A Grade II-listed vacant hotel in London's Bayswater, which comes with refurbishment and development potential, has come to market via Savills, Knight Frank and Dron & Wright, for £29.5m.
The c.40,000 sq ft vacant hotel comprises 92 en-suite bedrooms, a restaurant, bar, club, meeting rooms and spa facilities. The freehold site comprises five interconnected buildings and the property is arranged over lower ground, raised ground, and five upper floors.
The buildings were historically used as grand residences however, the internal floor layout has been transformed over the years into the existing hotel. Planning permission has been granted for a change of use to residential or serviced apartments.
The property is located in the heart of Bayswater, north of Kensington Gardens and Hyde Park and west of Marylebone. It is bordered by the Regents Canal and Little Venice, the vibrant West End and by the fashionable boutiques and cafes of Notting Hill.
The area is due to benefit from the forthcoming regeneration of Queensway, which will offer a vastly improved shopping and pedestrian experience in the immediate vicinity.
Alex Sturgess, Director in the Hotel Capital Markets team at Savills, said, “This is an extremely attractive investment opportunity to acquire a hotel asset in a prime central London location that provides excellent connectivity across London - and in a part of London that is due to benefit from regeneration to create a modernised and vibrant retail and tourist destination.
'With redevelopment potential and planning permission in place we expect to receive strong interest from a wide range of investors.”
Henry Jackson, Head of Hotel Agency at Knight Frank, added, “We are seeing strong demand for London hotel assets and whilst stock has been limited over the last year, levels are increasing.
'Assets where there is development and branding options are attracting good levels of interest. There are considerable amounts of equity seeking hotel investment opportunities and we are expecting an improving transactional market over the next 12 months.”
Bayswater, Queensway and Lancaster Gate underground stations are approximately less than a 10 minute walk from the property, offering excellent connectivity to the West End and The City of London.