Advisor Knight Frank has been appointed as the sole selling agent to dispose of the freehold interest in the Leonardo Hotel at London Heathrow Airport at a guide price of £30 mln (€36 mln).
Situated just a five-minute shuttle ride from Terminals 2 and 3, this well positioned 4-star hotel is being sold with the option to secure vacant possession in February 2026, presenting a rare opportunity for investors.
The purpose-built hotel, which was refurbished in 2019/2020, comprises 230 en suite bedrooms, 14 state-of-the-art meeting and conference rooms, a stylish bar, restaurant with 140 covers, and a fully equipped fitness area, as well as two spa treatment rooms. The property also benefits from a secure underground car park with 94 spaces, all set on a site spanning approximately 2.4 acres.
The Hotel is currently let on a fully repairing and insuring lease to Leonardo Hotels with a parent company guarantee from Fattal Hotels Ltd, subject to 5 yearly RPI linked upwards only rent reviews and has approximately just over 15 years remaining on the lease. The passing rent is £1.7 mln and is expected to increase to over £2 mln by the next review in March 2025.
An incoming purchaser will have the option to secure vacant possession through exercising a landlord only break clause effective from the 1st February 2026, subject to providing 6 months' notice prior, whilst receiving the benefit of an attractive rental income in the interim.
Shaun Roy, Partner, head of Hotels at Knight Frank, commented: 'The Leonardo Hotel Heathrow represents an excellent opportunity to acquire a premium property in one of Europe’s busiest travel hubs. Additionally, given the landlord only break clause, it presents a highly attractive proposition to owner operators to enhance value through inserting an alternative operator and or brand.'
