The acquisition of London properties by billionaire Tyler Morse and his former employer is detailed, highlighting their investments in the Soho House district.
MCR and Starwood Capital Expand London's Hospitality Landscape
In a significant move for the London hospitality industry, US-based hotel giants MCR and Starwood Capital have joined forces, with MCR taking Soho House private in a $2.7bn deal. This strategic partnership brings together two of the most influential figures in the hospitality sector, Tyler Morse and Barry Sternlicht.
Tyler Morse, the founder of MCR, has been expanding his London portfolio by redeveloping iconic buildings into hotels. One such example is the transformation of the Soho communications tower into central London's tallest hotel. On the other hand, Barry Sternlicht, the billionaire founder of Starwood Capital, has been acquiring large portfolios of luxury hotels in prime London locations.
In early 2025, Starwood Capital acquired a portfolio of ten high-end venues in London, including locations in Kensington, Covent Garden, and Oxford Street, for £800 million from Edwardian Hotels. Shortly afterward, MCR secured an agreement with BT to convert its Soho communications tower into central London’s tallest hotel.
Together, Morse and Sternlicht now control over 40 properties across the UK, with more than 24 located in London. Their combined London property holdings are valued in the billions of pounds, representing a strategic increase in high-end hospitality and real estate assets in the city.
Tyler Morse started taking a serious interest in the UK around 12 years ago. In 2017, Starwood bought a 30% stake in London hotel group Yotel in a $250m deal. MCR, prior to the Soho House takeover, already owned two US hotels operated by IHG, a FTSE 100 giant.
Soho House, founded in 1995 by restaurateur Nick Jones in Soho's Greek Street, has grown into a sprawling hospitality empire with venues and hotels across multiple countries. However, it has been loss-making for its entire time on the Nasdaq.
While the synergy between Morse and Sternlicht is driving substantial growth in London’s hospitality real estate sector, there are concerns about Soho House's business model. Susannah Streeter, head of money and markets at Hargreaves Lansdown, has expressed her reservations.
Meanwhile, Tyler Morse is also making waves outside the hospitality industry. Last year, he became a shareholder of Championship football side Swansea City. As for Barry Sternlicht, his investments later expanded to include hotel chains and hotel real estate investment trusts.
In the realm of hospitality, Morse is also chairman of Optii, a hotel software company used by various British hospitality businesses, including IHG’s luxury brand Crowne Plaza. Morse has expressed enthusiasm about continuing to grow through ventures like Soho House, with plans for new properties opening soon.
This strategic partnership between MCR and Starwood Capital is set to reshape the London hospitality landscape, with their combined properties offering a diverse range of experiences for tourists and locals alike.
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