Dubai-based conglomerate The Al Habtoor Group announced today (May 7) it has acquired the historic five-star Le Méridien Budapest Hotel.

The 218-room hotel, managed by Starwood Hotels & Resorts under the Le Méridien brand, is located in the centre of the Hungarian capital. The restored building housing the hotel dates back to the turn of the century.

The acquisition is Al Habtoor Group’s first investment in Budapest.

“Budapest is a beautiful, historic city with a unique atmosphere. I find its people both warm and welcoming and its culture delightful. I am pleased to be able to contribute in some small part to its tourist industry as I believe the country has a lot to offer and a bright economic future ahead of it,” commented chairman Khalaf Al Habtoor in a statement.

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The deal also marks the second partnership between Al Habtoor Group and Starwood Hotels and Resorts following the announcement last month that Starwood had signed a deal with Habtoor to open St. Regis, Westin and W at the Dubai Habtoor Palace development, on the site of the old Metropolitan Hotel.

“We are delighted to partner with the Al Habtoor Group again and to continue the successful management of the landmark Le Méridien Budapest Hotel under this new ownership”, said Thomas Willms, VP and regional director for Starwood Hotels & Resorts in East & Central Europe.

Close to the River Danube, the property features a 210-capacity ballroom, seven boardrooms, a spa. It also contains two restaurants: Le Bourbon and The Atrium.

Le Méridien Budapest Hotel is the 10th hotel in the Al Habtoor Group hotel portfolio. The company already owns three in Dubai and four which are currently being built, as well as two in Beirut.