London, September 29, 2003 – The Blackstone Group today announced that an affiliate of Blackstone Real Estate Advisors has purchased the Marriott Grosvenor Square Hotel from a private Japanese investor. The 221-room luxury hotel is located in the heart of London’s West End, in a close proximity to the US Embassy and to London’s most prominent shopping and business addresses. Terms of the transaction were not disclosed.
One of the key elements of Blackstone’s strategy for the property will be a £4.5 million modernization and refurbishment program, which will focus on the guestrooms and the food and beverage facilities. Additionally, Blackstone will be pursuing several high-value added asset management opportunities, including guestroom and function space additions, which should further enhance the value of the property.
“Although we have had a significant presence in the London luxury hotel market for a number of years, we are particularly excited about this first major London hotel acquisition in four years,” said Chad Pike, Senior Managing Director and Head of Blackstone’s European Real Estate group. He added: “As a result of the modernization program and the property’s competitive position (location, high quality product, and Marriott brand affiliation), we believe the property will capture a significant share of the expected recovery in the London hotel market.
About The Blackstone Group
The Blackstone Group, a private investment bank with offices in New York and London, was founded in 1985. Blackstone’s Real Estate Group has raised four funds representing approximately $4 billion in total equity. The group has made over 100 separate investments in hotels, offices and other commercial properties in Europe and North America with a total transaction value in excess of $13 billion. In addition to real estate, The Blackstone Group’s core businesses include Private Equity Investing, Corporate Debt Investing, Marketable Alternative Asset Management, Mergers and Acquisitions Advisory, and Restructuring and Reorganization Advisory.