JLL advises on the sale of the Blackfriars London – The City hotel
JLL has advised Blackfriars Hotel (UK) Holdings Limited on the sale of the Blackfriars Hotel – The City hotel, a four-star hotel located in the very heart of London, to LaSalle Investment Management (“LaSalle”).
London, 14 February 2022 – JLL has advised Blackfriars Hotel (UK) Holdings Limited on the sale of the Blackfriars Hotel – The City hotel, a four-star hotel located in the very heart of London, to LaSalle Investment Management (“LaSalle”).
Located in the Blackfriars area of the City of London, the 204 key upper upscale hotel was originally constructed in 1916 as offices for Spicer Brothers Paper Merchants. The building was fully redeveloped to create the four-star Blackfriars hotel in 1998.
Post-acquisition, the hotel will undergo refurbishment, repositioning and rebranding under the Hyatt Regency brand, the second in London.
London hotels have been one of the sectors most impacted by covid restrictions due to the city’s position as a global gateway market and its above-average reliance on international travel. However, with a better than forecast recovery in revenue being made in the second half of 2021 following full re-opening of the hotel market and signs of Omicron waning, JLL notes the demand from investors and operators for prime central London hotel opportunities remains very strong.
JLL and CMS acted on behalf Blackfriars Hotel (UK) Holdings Limited while Gerald Eve and Mills & Reeve advised LaSalle.
Kerr Young, Director, Hotels and Hospitality, JLL, said: “Despite the impact of Covid on operating performance, we are witnessing record levels of demand from investors to deploy capital into UK hotel real estate. Having explored a variety of options on behalf our client, we were able to structure a transaction that allowed for the release of equity from the asset whilst retaining longer-term ownership.”
Robin James, Head of Transactions UK & Ireland, LaSalle, commented: “We are delighted to have acquired the freehold interest of this substantial Central London island site. The structure will allow for the redevelopment and rebranding of the hotel whilst delivering a long-term, inflation-linked income stream for our client. The location and quality of the property provides confidence in its long-term income generating capabilities and value, whilst ensuring the rent received from the operator remains sustainable.”
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.