The owners of the 208-bed hotel indicated in 2010 their willingness to consider selling up in line with the terms of their original investment agreement. At the time property agents Knight Frank, which had been appointed to oversee any sale, had suggested international investors may be drawn to the Shoreditch venue.
However London-based Ennismore Capital today announced it had completed the acquisition of the hotel which was launched by Pret a Manger co-founder Sinclair Beecham in 2006.
The day-to-day operations of the hotel and the team at the Great Eastern Street site will remain the same but Sharan Pasricha, managing partner of Ennismore Capital will take control as interim chief executive of Hoxton Hotels - a new company founded and managed by the investment firm.
"Since opening its doors to much acclaim in 2006 I have watched The Hoxton establish a well-deserved reputation for redefining the budget hotel experience," Pasricha said after the sale was announced. "It’s mantra of 'luxury where it matters and budget where it counts' is exemplified through its strong customer following and superior financial performance," he added.
The Hoxton Hotel, which also features The Hoxton Grill restaurant and six meeting and event rooms, is credited with being at the heart of the growth in the independent boutique hotel sector in the UK capital.
The Hoxton Hotel has maintained average occupancy of around 90 per cent since it opened and currently operates a pricing structure similar to a low-cost airline.
Each room on each day has a maximum rate the hotel promises not to inflate beyond and the price gets cheaper the earlier guests book. The hotel, which has won numerous awards since it was founded including a place on the recent TripAdvisor 25 trendiest hotels list, also promises to refund guests if rates get cheaper than the level previously paid.
"Budget doesn’t have to be boring and we are committed to extending this model to new locations and geographies, particularly in London and New York where we are actively seeking new sites, as well as across Europe, through further acquisitions and strategic partnerships," Pasricha said.
Ennismore Capital was advised on the purchase by its advisory board which includes Simon Sherwood, former president and chief executive of Orient Express Hotels.