(Bloomberg) -- One of Italy’s best-known hoteliers has agreed to purchase a luxury hotel in Bayswater for roughly £180 million ($229 million), one of London’s biggest property deals this year.

Gruppo Statuto will buy the Six Senses Hotel at The Whiteley, a former office building that’s being converted into a luxury residential facility, according to people familiar with the matter. The 109-room hotel — currently owned by Hong Kong builder C C Land Holdings Ltd. and investment firm MARK – will officially change hands when it opens next year, the people said, asking not to be identified as the information isn’t public.

Gruppo Statuto said it’s strengthening its role in the European market, while CC Land said the Italian firm is the right fit. Mark declined to comment on the deal.

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Hotels have been a relative bright spot in Europe’s beleaguered real estate market as investors seek out properties that provide some protection from inflation given many aren’t tied to long-term leases on fixed rent. Resilient tourist demand has seen occupancy and room rates recover from their pandemic lows, luring investors including Starwood Capital and Ares Management to snap up UK hotel portfolios this year.

Gruppo Statuto, which owns some of Italy’s best-known commercial property including the Four Seasons Hotel in Milan, has been expanding its hospitality empire across Europe over the past year. 

The company bought the Mandarin Oriental hotel in Paris for more than €200 million ($217 million) in January, according to a CoStar News report. That followed a €245 million purchase of the Six Senses hotel in Rome late last year, one of the biggest European hotel deals in 2023, CoStar reported.

Gruppo Statuto’s new London property — nestled between Hyde Park and Notting Hill — represents its first UK hotel purchase. The Whiteley building, designed by architectural giant Foster + Partners, will include luxury apartments as well as high-end restaurants and retailers.

--With assistance from Jack Sidders.

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