London aparthotel Native Bankside of Native Places group has been acquired by Jastar Capital for at least £40m.
The 75-unit, BREEAM Excellent-rated development near London's Borough Market will continue to be operated by Native Places under a long-term management agreement.
Native Places has eleven sites across London, Manchester, Edinburgh and Glasgow.
The transaction, completed by Create REIT, comes after global real estate adviser JLL described service apartments as "the fastest growing sector in hospitality".
Jastar Capital is a family-owned business with 35 years' experience in the hospitality, leisure and property sectors in the UK, specialising in asset management.
Its recent acquisitions include the Elvetham Hotel, Hampshire, the Winchester Hotel and Spa and Wardrobe Court, London.
Jay Matharu, acquisitions director of Jastar Capital, said: "We are excited by the growth potential for aparthotels, there is no better asset in the sector south of the river than Native Bankside. It is in a superb, vibrant location and is expertly managed by Guy Nixon and the Native Places team, who we look forward to working alongside. It is a fantastic addition to our portfolio."
Guy Nixon, chief executive and founder of Native Group, said: "Aparthotels are a safer haven than traditional hotels partly because customers stay for longer periods resulting in lower turnover & servicing costs, which in turn creates a leaner cost structure, delivering stronger profit margins for investors."
Savills advised Create Reit, and Adynaton advised Jastar Capital on the acquisition.