06 March 2017, London: Aprirose, the real estate investment company, has acquired 52 Poland Street from Quadrum Global, an international real estate investment firm. The office building was purchased for £30 million, and is to be converted into a hotel under the stylish Z Hotel brand.
Planning permission for the hotel was granted on 10 January 2017. The new hotel will comprise 110 beds. Z Hotel, which provides expertly designed affordable compact luxury in prime locations, is a national brand with hotels in central London, Liverpool and Glasgow, and has an average occupancy of 98-99%.
Manish Gudka, CEO at Aprirose, said: “With the fall in the value of sterling we continue to see an increase in international tourists visiting the UK, which is driving demand for more hotel beds, and opening the market to new brands. In particular there has been an increased demand for affordable boutique hotels, which epitomises the Z Hotel brand, which is known for high quality rooms, delivered to a high standard with a contemporary style.
“At Aprirose we look for the best opportunities for our investment partners and we are able to get a deal done quickly when the right situation presents itself. The conversion of the Poland Street site into a Z Hotel is a prime example of combining one of the capital’s most thriving districts with a well-known and respected hotel brand that operates effectively in the London market.”
Ilyas Aslam, Quadrum’s Chief Operating Officer, added: “We are very pleased with the outcome of this successful transaction and believe Aprirose and Z Hotels are perfectly positioned to maximize value of this property as a hotel use. Their commitment to the deal at a time of heightened political uncertainty underscores continued interest of sophisticated investors in the UK market and particularly the opportunities in Central London.”
Research form Knight Frank shows that on a global basis London continues to attract strong hotel occupancy levels (averaging over 80% on an annual basis), achieve high average room rates and benefits from a strong mix of corporate and leisure demand.
The new hotel is expected to open its doors by year end 2017.
Aprirose’s £1 billion portfolio contains 2,050 hotel rooms under management.