Dutch pensions group APG and London Central Portfolio (LCP) have acquired its first asset for a newly formed London hotels investment venture.
The all-suite lifestyle hotels joint venture has paid an undisclosed sum to acquire the Harrington Hall Hotel in South Kensington.
Robert-Jan Foortse, head of European property investments at APG. said: “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.”
Foortse said the 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.
“With our partner, LCP, we intend to create a new type of accommodation for the prime central London market which is cutting edge in terms of place-making, whilst also promoting the highest standards in environmental and social responsibility.
“It is a vision that we share with our operating partner who will be leading the project on our joint behalf.”
Naomi Heaton, founder and CEO of London Central Portfolio, said: “Specialists in the ‘heads on beds’ sector in prime central London for the last 30 years, LCP has always been at the cutting edge in recognising and meeting the changing needs of the global traveller.
“With APG, we will build an affordable and innovative all-suite hotel brand across central London with a real emphasis on the guest experience.”
Heaton said 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, Heaton said.