Union Hanover reveals plans for boutique hotel

Hotel developer and operator Union Hanover has announced plans to create and run a high-end boutique hotel located at the International Quarter in Stratford City, following its acquisition of Starboard Hotels’ share in the project. 

Union Hanover will operate the £70m Penny Brook Hotel under its NOHO hospitality brand, and is being advised on the project by Restaurant Property. The hotel has 220 bedrooms as well as a rooftop bar and restaurant that ranges over its top two floors. The venue comes with 15,000sq.ft of conference space and also features a pop-up street food market offering. It is being designed to reflect the Meat Packing district in New York.

Running the site as a boutique hotel is in direct contrast to the company’s original plans, but managing director of Union Hanover Eric Jafari has wanted to develop a boutique hotel for a long while.

He said: “This is a hugely exciting opportunity for us. We believe that we can create a New York-inspired boutique hotel that will inject a real buzz into Stratford, which has unrivalled access to the City, West End and Canary Wharf.

“We are in talks with a number of high-end restaurant operators and have a number of creative initiatives which will ensure this will offer a unique hospitality experience.”

Change in plans

Union Hanover’s original plans for the site were made in a partnership with Starboard Hotels. The groups intended to build a 275,000sq.ft hotel which would have up to 500 bedrooms and be an internationally branded hotel as well as a Union Hanover Urban Villa. Union Hanover has now bought Starboard Hotels out of the project.

Managing director of Starboard Hotels Paul Callingham said: “Starboard Hotels is currently looking at opportunities in key cities throughout the UK in which we can expand our portfolio of private and franchised hotels and luxury hostels. This deal, which delivers a strong return on our original investment without and development risk, has allowed us to make funds available for further property acquisitions.

“The arrangement works well for both Starboard and Union Hanover, we enjoy a good working relationship and we may work together on other projects in the future.”

Recently Union Hanover, along with its funding partner EquityBridge Asset Management, signed a development partnership with Aparthotels Adagio which will see Adagio operate the 137 apartment Adagio London Stratford on Celebration Avenue and a 217 apartment hotel at Black Lion House on Whitechapel Road.

Managing director of EquityBridge Asset Management Warren Malschinger said: “The deal with Adagio has allowed us to provide Union Hanover greater flexibility which will see them retain, own and operate the £70m Penny Brook Hotel under their NOHO hospitality brand.”