Two prime London hotel developments up for sale
Two of London's major hotel developments have been put up for sale following a dispute between the partners of the owner, the Splendid Hotel Group.
The partially completed 256-bedroom InterContinental London Westminster is being marketed for a sum in excess of £80m, while the development site of the 280-bedroom Hilton Bankside hotel in Southwark is being sold for more than £35m. Interested buyers will also have to contribute to additional costs to complete each project.
A disagreement between Shiraz Boghani and Bashir Nathoo, the property developer owners of the Splendid Hotel Group, which has operated a number of InterContinental franchises under the Holiday Inn brand, has led to the current sale.
Close to St James's underground station and Westminster Abbey, the InterContinental is being built behind a 19th century period facade which at one time housed a hospital and more recently has been used for office and retail space. It will include a spa, leisure facilities, restaurant, bar, business centre and meeting rooms, and is due to be completed in summer 2012.
Paul Bartrop, director of CBRE Hotels, which is handling the sale of the property, said: "There is no doubt that this hotel will prove to be a valuable and popular addition to London's five star hotel inventory, that it will quickly establish itself on opening and can be expected to perform strongly due to its outstanding location and the high quality of the product."
The Hilton hotel is located between Southwark underground station and the Tate Modern. Most of the groundwork of the property - to include a ballroom for 700, health and leisure facilities, a restaurant, bar and business centre - is complete.
"This part of London is seeing rapid growth and gentrification," said Bartrop. "The site represents a first class opportunity to acquire a high profile hotel development project complete with full planning permission where much of the hard work has already been done."
The sale of both hotels is subject to respective management agreements with Intercontinental Hotels Group and Hilton UK.
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By Janet Harmer
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