The Grade-II listed Northumberland House hotel in London has reportedly been sold for a staggering £30m-plus after nearly two years on the market. Plans may now be afoot to return it to its former glory as an exclusive hotel.
The building, near Trafalgar Square, which was owned by the Ministry of Defence, has been sold by Chesterton to private US hotel firm Masterworks Development Corporation, founded by Club Quarters hotelier Ralph Bahna.
Joel Goldman, director of hotels for Davis Coffer Lyons, was surprised by the sale price. He told Caterer: "The best price was definitely achieved. The price allegedly obtained represents tremendous value for the taxpayer."
He added that, given the age and condition of the building and the considerable development costs and planning risks attached - no planning permission has yet been applied for or granted - it was a high price.
The property is also landlocked, making deliveries, access and planning permission "difficult but not impossible", said Goldman.
Source: Caterer & Hotelkeeper magazine, 16 December 2004