UK hotel investment surged after the June 2016 Brexit referendum as the pound’s slump lured tourists and international buyers.
Sunday 12, May 2019
(Bloomberg) --The owners of London’s Cavendish hotel in the upmarket St. James’s neighbourhood hired brokers to sell the property for about GBP 250 million ($325 million).
Singapore-based CapitaLand appointed Jones Lang LaSalle to offer the 230-bedroom hotel, which stands opposite the iconic Fortnum & Mason department store on Jermyn Street.
CapitaLand bought the property in 2012 for a reported GBP 158.8 million.
A CapitaLand spokesperson said, “we constantly evaluate opportunities to maximise returns to shareholders, we will make an announcement if there are any definitive agreements.”
According to research from broker Knight Frank, investment in London hotels increased 23 per cent in 2018 to more than GBP 2.5 billion.
Philippa Goldstein, a hotel analyst at Knight Frank, said, “Hotels have done particularly well even when other sectors have not, it will remain strong despite Brexit because the interest of overseas investors remains very strong and the currency play is an added benefit.”
A stay at the four-star Cavendish ranges from GBP 215 a night in a basic room to as much as GBP 1.100 for the penthouse suite, which features views of Big Ben and the London Eye.
Additionally, the original hotel rose to prominence in the early 20th century when it was managed by socialite Rosa Lewis, dubbed the Duchess of Jermyn Street, the current hotel was rebuilt in 1966 after the original was damaged during the Blitz.