A new hotel investment will be made in London Paddington
A 620-room aparthotel will be opened in London’s Paddington district. The double-branded hotel is expected to open in 2021.
The UK-based M & G will finance the development of the new hotel. The hotel building construction development consortium will be developed by Concierge 3 Limited. The capital will be provided by the M & G secured property revenue fund.
According to deal, Whitbread, the owner of Premier Inn, and Staycity will each take 30-year leases on five yearly inflation-linked rent reviews, operating independently with 60 percent and 40 percent of the rooms, respectively.
Infrastructure works around the hotel increased interest in the region. The hotel is expected to be an office and entertainment center in the future. Also for those who want to stay for business and holiday services will be provided. In the mixed-use project, training facility and landscaping will be done within the area of 27,000 square meters.
“The £2-billion invested in Paddington in recent years has predominantly been invested in office and residential developments, positioning this hotel and aparthotel transaction as an attractive investment opportunity” said Kevin Vickers, investment director at M&G Real Estate.
“London is one of Europe’s best performing hotel markets and is expected to account for more than a third of the pipeline of new aparthotels in the UK and Ireland market by 2021,” Vickers continued, noting occupancy in the city averaged around 84 percent in 2017, according to PwC. “The increase of high-profile operators entering the market and the availability of operating data is enabling investors to become more comfortable with investing into the sector.”
“We’ve been exploring opportunities to invest in Paddington for some time now and are very excited at the prospect of gaining a presence for Premier Inn there,” said Jonathan Langdon, acquisition manager (Central London) for Whitbread. “It’s a fantastic development in one of London’s most vibrant and well-connected areas and the hotel adds another quality zone-one location to our growing London portfolio.”
Sevdenur Demir / [email protected]