Two heavyweight investment companies have announced the launch of a new joint venture with the acquisition of the Harrington Hall Hotel in London.
APG, the largest pension delivery organisation in the Netherlands and real estate company, London Central Portfolio (LCP) have taken over the hotel as the first in a ’programme of acquisitions’ for a new brand of lifestyle hotels.
The currently-vacant 200-bedroom hotel was put on the market last year for £130m by Saudi Arabian multinational the Olayan Group.
Olayan Group acquired the hotel, made up of a series of terraced houses converted in 1991, from Spanish Group NH Hotels for £90m in 2014.
The new group from APG and LCP will be designed to cater for the ‘budget-conscious business and leisure traveller’, with the aim to acquire other hotels in ‘key micro-markets in prime Central London’.
Harrington Hall Hotel scheduled to reopen in spring 2022.
Robert-Jan Foortse, head of European property investments at APG commented: “APG is delighted to be able to further broaden its hospitality investment programme. The Harrington Hall Hotel in South Kensington will act as a cornerstone for a new lifestyle brand of all-suite hotels which will be located in key micro-markets across Prime Central London. This acquisition represents an attractive opportunity to gain access to a high-quality property and add value through refurbishment, innovation and repositioning to meet the needs and aspirations of today’s travellers.”
Naomi Heaton, founder and CEO of London Central Portfolio (LCP) commented: “LCP is delighted to have secured the Harrington Hall Hotel in South Kensington as the first acquisition in the new venture, which is planned to open in spring 2022. LCP will be responsible for its design, development and operation and the intention is to follow this up shortly with further acquisitions across central London’s prime neighbourhoods.”