Luxury boutique hotel South Place Hotel in London has been sold on behalf of its owners Frogmore to an international investor.
The hotel, built by Frogmore in 2012, is operated by trailblazing F&B brand D&D, and comprises 80 bedrooms, the Michelin-starred Angler restaurant, South Place Chop House and the Secret Garden, as well as event space and a spa and gym.
While details have yet to be revealed about the incoming owner, it’s believed that D&D will continue to operate the hotel on their behalf.
Located between Moorgate and Liverpool Street stations, the hotel is set to benefit from the new Crossrail station at Liverpool Street set to open in 2018.
Jo Allen, chief executive, Frogmore, added: “This sale marks the conclusion of the Frogmore team’s combined involvement in developing South Place Hotel. The site was acquired for our first real estate private equity fund, FREP 1, and originally intended for office use. We were delighted to work with Gerard Nolan & Partners on a pre-letting of the hotel to D&D, followed by securing planning consent, undertaking construction and watching the hotel revenue grow and stabilise.”
Marc Nelson, director, CBRE Hotels, said: “This deal demonstrates the sustained interest from international buyers to London as well as the significant appetite from long-dated fixed income investments in the hotel sector. In this low interest rate environment, the allocation of hotel real estate within investment portfolios continues to remain attractive to investors, given the enticing risk-adjusted returns and ability to appropriately match long-term liabilities with long-term investments.”