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Two overseas buyers have made significant investments into London hotels as finance into the UK hospitality sector continues to improve.
Singapore-based Prima Asset Management bought a west London hotel renovation scheme that has an end value of £40M, Mingtiandi reported. The 68-room Victoria Garden Hotel near Paddington is being refurbished and extended to 80 rooms in a deal using debt from OakNorth Bank.
The four-star hotel is housed in an 1840s-era building that features two houses knocked together and converted to a hotel. Prima is working with specialist hotel operator and developer Capilon on the deal.
“With London recording the second highest international tourism arrivals globally in 2023, we are confident in the long-term prospects the city has to offer as it remains an attractive and robust investment destination,” Prima co-founder and partner Birbal Singh Bajaj said in a statement.
Separately, Turkish hospitality group Kaya acquired the Great Northern Hotel next to King’s Cross station for an undisclosed price. The 88-room, four-star hotel is Kaya’s first purchase in the UK and gives it a portfolio of 13 hotels. Broker BlackGate advised Kaya on the deal.
UK hotel investment volume hit £3B in the first half of the year, data from Knight Frank showed, well above the full-year 2023 total of £2B. That figure was bolstered by large portfolio deals undertaken by private equity firms.
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