Guestinvest seals £120m hotel deal

UK hotel investment company GuestInvest has bought two central London properties for £120 mln after securing a further £200 mln injection from Bank of Scotland Corporate. The acquisition brings Guestinvest's property portfolio to £300 mln. The company said it plans to redevelop the properties located near Hyde Park and Notting Hill into two hotels. The hotel near Hyde Park will be named The Jones and will open for business in mid-2008 following a multi-million pound redevelopment programme.

The developments will add a further 433 rooms to GuestInvest's property portfolio, and follow on the heels of the company's investment in the iconic luxury London hotel and celebrity haunt, Blakes, in November last year.

Built at the turn of the century, The Jones is reported to have been commissioned by Edward VII as a private residence for his mistress Lillie Langtry. The 'Theatre Bar' which remains intact was built by the King for Langtry to perform in.

GuestInvest added that it plans to expand into at least 10 gateway cities worldwide.

Johnny Sandelson, CEO and founder of GuestInvest, said: 'Hotels are an area of the commercial property market that are bucking the trend of a general downturn, and we’re excited to be able to offer investors such a hassle-free investment that also captures a piece of London’s magnificent history and heritage.'

Recent Deloitte research demonstrated the UK hotel sector has maintained strong growth despite the reported softening of economic conditions. London hotel rooms grew by more than 10% in 2007, mainly due to continued high occupancy rates (83.6%). GuestInvest said it is now set to capitalise on the current commercial and residential property sectors by offering investors an investment which will continue to outperform traditional markets.