Magnificent Hotel Investments (MHI), a Hong Kong-based investment company, has announced the purchase of a London hotel for £70 mln (€85 mln).
The Asian investor acquired the Royal Scot Hotel, branded Travelodge, in King’s Cross Road, London. Featuring 408 rooms, bar, restaurant and parking for 40 cars, the six-storey property comprises 157,000 sq ft (14,600 m2) of space with a net income of around £3 mln per annum.
In a statement, MHI said that the acquisition represented ‘an undervalued opportunity to acquire a substantial size freehold hotel of 408 rooms in one of the most popular tourism cities, London’.
‘The management is confident the total floor area and number of rooms can further be increased in a later stage by extensions and redevelopment,’ it added. MHI believes that the outcome of Brexit will have ‘no adverse effect on the London tourism market’.
‘The pound is experiencing a dramatic depreciation as a result of Brexit. The depreciated currency is favourable news as far as the tourism in the UK is concerned as the weaker pound may attract more travellers to the UK and the accommodation providers will enjoy increasing demand of accommodation accordingly.’
