Generali Real Estate, part of Generali Investments, completed the acquisition of Novotel Tower Bridge London, a 4 star hotel with 203 rooms in 10 Pepys Street, the City. Ares Real Estate and EQ Group sold the asset with the advisory support of JLL (press release)
The buyer carried on the transaction through Generali Real Estate Umbrella Fund – Hospitality Europe Fund, a Luxembourg-based paneuropean fund for the asset hospitality sector (press release) that paus 155 million GBP of little below 0.764 million per room, Green Street reported.
Generali Real Estate has a one billion euros worth portfolio of Upscale, Upper-Upscale and Luxury assets in prime locations of important European cities such as Milan, Rome, Madrid, Paris, Prague, Venice, Lione, and London.
Gabriella Pelosi, the head of the hotel sector and portfolio manager of Generali Real Estate, said: “We are delighted to add the Novotel Tower Bridge to our portfolio. London is one of the most liquid and resilient entry-level markets globally; this acquisition provides a solid foundation for the continued growth of our hotel portfolio, further expanding its geographical reach beyond our current presence in Italy, Spain, France and the Czech Republic. We expect the property to generate stable recurring income for our investors, whilst offering attractive growth potential supported by its strategic location and strong market positioning.”
The acquisition of Novotel Tower Bridge London is also a key step in the development of a scalable hotel operating model structured around a flexible Hotel Management Agreement (HMA) approach. This framework is set to serve as a benchmark for future investments across Europe.
JLL pointed out that the deal is further confirmation of the strength of the London hotel market and that in 1Q26, the value of hotel transactions in London reached 834 million pounds.
William Duffey, JLL’s Hotels & Hospitality Group Head of EMEA Hotels & Hospitality Capital Markets Hotels & Hospitality Group, added: “This major London property forms part of the wider portfolio [of 21 hotels with a total of 3766 rooms]that Ares and EQ have acquired from Land Securities (press release) [for 400 million GBP – 106 million for Novotel London, CoStar reported].
Ares and EQ Group also sold other assets of the Landsec portfolio: in September 2025, Arora Group and Deva Capital purchased 630 rooms Novotel London West for 160 million GBP. In January 2026, the firms sold Novotel Manchester Centre (164 rooms) and Ibis Manchester Centre (127 rooms) to German A&O Hotels & Hostels. In February 2026, Clearsense Ventures, part of SanRaj, both Novotel Leeds Centre (196 rooms), l’Ibis Glasgow (141 rooms) and Novotel Glasgow Centre (141 rooms).
