LaSalle IM checks into Ruby Stella Hotel for €56m

Real estate firm RE Capital has sold the Ruby Stella Hotel in Clerkenwell, London, to global real estate investment manager LaSalle IM for £48 mln (€56 mln).

Ruby Stella Hotel

The Ruby Stella Hotel, situated on Eyre Street Hill in Farringdon, boasts a prime location near major London attractions like Covent Garden and the Tower of London. Its proximity to Farringdon station provides excellent transport links, including a 40-minute connection to Heathrow Airport.
The upscale hotel, which opened in November 2024, features 153 rooms, a restaurant, a bar, and a courtyard terrace.
Built by RE Capital, it holds an 'Excellent' BREEAM rating and an A6 EPC rating, demonstrating strong ESG credentials with features like air source heat pumps and a reduction in CO2 emissions by over 35%.
Luke Dhanoa, head of UK Asset Management, RE Capital UK, commented, “We are proud to have delivered the Ruby Stella Hotel, a thoughtfully designed, highly sustainable asset that reflects our values of quality, integrity, and long-term vision. Working with Ruby Hotels has been a pleasure, and we’re confident the project will continue to flourish under its new ownership.”
Richard Dawes, director at Savills Hotel Capital Markets, said, “The property’s long-term lease to an institutionally trusted operator made it an attractive proposition for investors. The Ruby Stella is exceptionally positioned to offer robust returns backed by its location, outstanding sustainability credentials, and ‘lean luxury’ offering.”
Sophie Simmonds, managing director, UK Custom Accounts at LaSalle, said: “Ruby Stella represented a compelling opportunity to secure another long-income, index-linked asset built to impeccable sustainability standards in a prime central London location. This latest hotel acquisition in the UK’s capital city further strengthens our exposure to the resilient and evolving lifestyle hotel sector whilst being underpinned by a strong residual value.”
Chris House, senior transaction manager at LaSalle, added: “With London attracting 20 million visitors in 2024, the Ruby Stella is perfectly situated in a vibrant and accessible location, well-positioned to capture both business and leisure demand. As well as allowing us to tap into this dynamic market, the acquisition of the Ruby Stella supports our broader strategy of enhancing portfolio quality through investments in modern, well-located assets with strong fundamentals.”
Savills and Katten Muchin Rosenman advised RE Capital, while LaSalle IM received advice from Constantine RE and Gowling WLG.