London based hotel group, Starman Hotels has completed the sale of the iconic 298-bedroom Le Méridien King Edward in Toronto to King Edward Realty Inc for CAD$48 million (aprox. 35.1 mln.). Following the sale the new owners plan to renovate the property and convert three floors into luxury condominiums.
Named after King Edward VII, the landmark property is located in the heart of Toronto's financial district. Built by George Gooderham and opened in 1903, the King Edward was one of the city's first luxury hotels and attracted the cream of society as well as visiting celebrities including the Beatles, Margaret Thatcher, Britney Spears, Elizabeth Taylor and Richard Burton, Elvis Presley and Ernest Hemmingway. The hotel was designated as a historical site in 1975 and became part of the Le Méridien brand in 2001.
Felicity Black-Roberts, director of property for Starman Hotels, said: "Despite the downturn in the world economy, last year the hotel achieved a net operating income (NOI) of CAD$1,63 million representing an initial yield of 3.4%, which in this tough economic climate is an excellent result.
"We have now successfully completed the sale of all our major non-European hotels and can focus on our 18 remaining properties. The portfolio includes Le Méridien Piccadilly where work on a £6 million program to update and improve the property has almost been completed."