London hotels have put up a “For Sale” banner outside their spic and span buildings (not literally of course) and the total price is coming to over a £1 billion! The owners are looking to sell their properties in order to cash in on the recovering commercial property prices. As the pound is weak right now, more and more foreign buyers are getting attracted who have more purchasing power at this stage.
Jonathon Lanston, managing director of TRI says that, “Anticipated revenue growth in 2010 and a watchful eye on costs bode well for the capital’s hotels.” Many hotel owners are being contacted by Middle Eastern groups, mostly from Abu Dhabi, Kuwait and Bahrain, who are keen on acquiring these properties as trophy assets.
Richard Candey, a director at real estate advisory firm DTZ said, ‘Long-established hotels are nearly impossible to replicate, have international brand appeal and occupy some of the best real estate in the world.’ Hence, buying them is an easier option than building one of your own.
St James’s Hotel & Club is supposed to be sold for £60 million, whereas the Dukes Hotel will most probably be sold for £45 million. Other hotels that have been sold or will be sold in the future are: The Cumberland at Marble Arch, Le Meridien, the Park Inn at Hyde Park, and a few others.