Singapore's CapitaLand Plans $325 Million London Hotel Sale
(Bloomberg) -- The owners of London’s Cavendish hotel in the upmarket St. James’s neighborhood hired brokers to sell the property for about 250 million pounds ($325 million), according to people with knowledge of the appointment.
Singapore-based CapitaLand Ltd. appointed Jones Lang LaSalle Inc. to offer the 230-bedroom hotel, which stands opposite the iconic Fortnum & Mason department store on Jermyn Street, said the people, who asked not to be identified as the process is private. CapitaLand bought the property in 2012 for a reported 158.8 million pounds.
A CapitaLand spokesperson said “we constantly evaluate opportunities to maximize returns to shareholders. We will make an announcement if there are any definitive agreements.” A representative of Jones Lang LaSalle declined to comment.
U.K. hotel investment surged after the June 2016 Brexit referendum as the pound’s slump lured tourists and international buyers. Investment in London hotels increased 23 percent in 2018 to more than 2.5 billion pounds, according to research from broker Knight Frank.
“Hotels have done particularly well even when other sectors haven’t,” said Philippa Goldstein, a hotel analyst at Knight Frank. “It will remain strong despite Brexit because the interest of overseas investors remains very strong and the currency play is an added benefit.”
A stay at the four-star Cavendish ranges from 215 pounds a night in a basic room to as much as 1,100 pounds for the penthouse suite, which features views of Big Ben and the London Eye. The original hotel rose to prominence in the early 20th century when it was managed by socialite Rosa Lewis, dubbed the Duchess of Jermyn Street. The current hotel was rebuilt in 1966 after the original was damaged during the Blitz.
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