Joint venture snaps up two Club Quarters hotels

Two Club Quarters hotels in the City of London have been acquired by a joint venture between AXA Insurance Companies and Denmark's largest pension fund ATP, from Chelsfield Partners for £180m.

The deal comprises a 265-bedroom hotel at St Paul's (pictured) and a 203-bedroom hotel on Gracechurch Street, adjacent to the Leadenhall Market. The properties were put on the market in 2012.

Club Quarters operates 17 full-service hotels in the US and London aimed at the business community. A large proportion of the hotels' revenues are from organisations signing up to membership of the group to guarantee low, fixed rates. However, non-member guests can also book into the properties at weekends and during holiday periods.

Huw Stephens, head of UK transactions, AXA Investment Managers - Real Assets, said the transaction was an attractive investment, which adds to the group's £4.5b UK portfolio. "Together with our investors, we are looking forward to a continuing partnership with Club Quarters as the assets enter a new phase."

Michael Nielsen, chief executive of ATP Real Estate, added: "We are happy to see our international real estate strategy diversifying also to the hospitality sector."

The two other Club Quarters hotels in London are located in Trafalgar Square and Lincoln's Inn Fields.

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