Whitbread Acquire Freehold On 5 Strand To Make Hub By Premier Inn…..Thwarting Plans For a Park Hyatt
Main Photo: The original rendering as a Park Hyatt
Date: August 2022
Name: Hub by Premier Inn – to open 2027
Location: No. 5 The Strand, London, England, UK
Number of Keys: 200+
Seller: India’s Abil Group bought the site in June 2018 from BlackRock UK Property Fund for around £90m…with initial plans to develop as a Park Hyatt
Buyer: Whitbread have now acquired the freehold for an undisclosed sum, against many bids from other interested parties. The total investment is expected to be £200m to include construction costs
Whitbread PLC has announced that it has acquired a prime freehold property on the Strand in central London, located just off Trafalgar Square. Subject to planning, 5 Strand will become the latest hub by Premier Inn hotel in the estate and is expected to open sometime during 2027. The purchase and development are being funded from the Group’s existing cash resources and will also include one of the Group’s popular Bar+Block steakhouse restaurants.
With a total investment of over £200m, including construction and related costs, this development reflects Whitbread’s commitment to continue to invest in expanding its presence in the popular London market where a significant proportion of Premier Inn’s future pipeline is located.
The purchase also underlines the Group’s confidence in the hub by Premier Inn brand. The brand was first introduced in 2014 and now has a total of 2,431 open rooms which performed strongly in FY22 and continues to score highly with our guests. Hub by Premier Inn is designed for locations in major cities where property prices are relatively high but, thanks to its smaller room format, is still able to generate attractive long-term returns whilst providing affordable rooms for guests.
Alison Brittain, CEO, commented: “I’m delighted that we’ve been able to acquire this iconic location, which is set to become our latest hub by Premier Inn hotel. It is in a prime position and is perfect for the hub brand which is continuing to perform well. The purchase reinforces our confidence in the long term potential of the London market, the hub by Premier Inn brand and the growth prospects of our UK business.”
Price: £200m+
Price Per Key: Depending on number of keys – Hub by Premier will probably make 250/300 rooms – then around £700k…expensive for Whitbread, but cheap for the area
THPT Comment: This site had been hanging around for a while, so good to see a solid brand by Premier Inn win in the end, and surely a far cry from the luxury end that Park Hyatt would have bought to the area
First Seen: Whitbread press release
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