German investor ECE has decided to make a strategic move into the UK hotel market, where it believes it can see value in market segments that others have paid little attention to, until now.
The move is being made via the group’s ECE Work&Live division, which invests across residential, logistics, hotel and office sectors across Europe. In this instance, the focus is on hotels, as the group has acquired Staybridge extended stay hotels in the UK regional cities of Liverpool and Newcastle.
A Focus on UK Regional Assets
The two assets will be put into a new portfolio fund established by ECE Work&Live alongside partner Maya Capital. The pair plan to develop an institutional portfolio of medium sized hotels, picking up properties in the mid to upscale segments of the market. They aim to invest up to GBP150 million in up to eight assets, targeting regional UK cities and leaving London to other investors.
Target properties could be standing assets, such as the two Staybridge properties just purchased, or alternatively other buildings with vacant possession. Extended stay properties are valued for their high guest demand, and attractive income yields.
“The acquisition of the two Staybridge Suites hotels in Liverpool and Newcastle is part of our opportunistic approach of investing in smaller UK hotel properties that are often overlooked by institutional investors due to their size,” said Jan-Hendrik Walloch, who leads investment at ECE Work&Live. “We see this as an excellent opportunity to build a portfolio with significant upside potential.”
The investment partners expect to look for ways to add value to their acquisitions via several routes. Many investors are seeing ways to modernise building fabric elements, to enhance the environmental performance of properties, for example by updating heating, cooling and air conditioning equipment. Upgraded properties are valued by institutional investors, who are keen to avoid future penalties from owning buildings with poor carbon footprint scores.
Both the properties acquired are managed by Cycas Hospitality, a well established European third party manager. Staybridge Liverpool originally opened in 2008 and was one of the first Staybridge branded properties to launch in the UK market. The seven floor block has 132 rooms, sitting close to the city’s events centre and tourist destinations, and was refurbished in 2017.
The Newcastle hotel dates from 2009, and similarly has seven floors. Its 128 rooms were extensively upgraded in 2024, and are located centrally in the city, close to a city metro station.
Working with the Ruby Brand
Aside from this investment portfolio, ECE is active elsewhere in the hotel space, working alongside the Ruby hotel brand. ECE Work & Live is developing a new hotel for the brand in Copenhagen, with the pair having already signed a lease agreement for the property, which will open in 2027.
ECE has already delivered a 164 room Ruby in the Italian city of Rome. The property was completed in October 2025, and was ECE’s first hotel development in the country.
