Two of London’s luxury hotels will soon change hands for £192 million, they are to be sold to a Middle East investor.The two upmarket, modern properties are the Sanderson, near Oxford Street, and the St Martins Lane hotel in London’s West End.
The deal follows the purchase last month of the W Hotel in Leicester Square in London by Qatar’s Al Faisal Holding in a deal worth close to £200m. Morgans Hotel Group, the operator and 50% owner of the joint venture that owns the Sanderson and St Martins Lane hotels, announced the sale. The buyer is reported to be Capital Hill Hotels, described as a Middle Eastern investment group with other global hotel holdings. The sale of the hotels is expected to be completed by the end of the year.
The current owners and joint-venture partners will use the sales proceeds, along with cash in escrow, to retire the outstanding mortgage debt, which is secured by the two hotels. The joint venture partners received a £10m security deposit, which is non-refundable, except in the event of a default by the joint venture. The Morgans Hotel Group will continue to manage the hotels.
Jones Lang LaSalle Hotels in London confirmed it was advising on the sale. The indusrty advisors say that a current lack of properties continues to drive competition for good-quality assets in London. It is predicted that sales of hotel properties around the world would increase by as much as 40% to $30bn this year.