CDL buys 706-room Holiday Inn London for $480 million
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Holiday Inn London on Kensington High Street is near various cultural landmarks such as Hyde Park, Kensington Palace and Royal Albert Hall.
PHOTO: CITY DEVELOPMENTS
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SINGAPORE - A wholly owned subsidiary of City Developments Limited (CDL) – Copthorne Hotel Holdings – has completed the acquisition of Holiday Inn London on Kensington High Street for £280 million (S$480.2 million).
The hotel has 706 rooms, with the sale executed at £396,600 per room, said CDL in a statement on Dec 2.
The hotel is a two-minute walk away from Kensington High Street, which is near various cultural landmarks such as Hyde Park, Kensington Palace and Royal Albert Hall.
The property, which is freehold and spans 6,356 square metres, is also a 15-minute walk from exhibition centre Olympia London.
CDL said that the hotel has maintained “robust performance”, with high occupancy rates of more than 97 per cent for the nine months ended September.
“Total revenue for the preceding 12 months exceeded £39 million, and the hotel is expected to generate a running yield of over 6 per cent,” it said.
Kwek Leng Beng, executive chairman of CDL, said the acquisition is a “once-in-a-lifetime chance” to secure an ultra-prime freehold site in Central London.
“Freehold sites in this location are exceptionally scarce, and it is even rarer to find one directly adjacent to our Copthorne Tara hotel,” he added.
The group will own two of the largest freehold sites in Kensington and Chelsea in London, following the deal.
With this acquisition, CDL has expanded its Central London portfolio to over 3,000 hotel rooms.
Its other properties there include The Biltmore Mayfair, Millennium Gloucester Hotel London and the Copthorne Tara Hotel London Kensington. THE BUSINESS TIMES
