Aparthotel operator Staycity has announced it will take part in a 620-room property along with Premier Inn located at a new £203 million complex in London’s Paddington.
Real estate firm M&G has acquired the long leasehold interest of the site and will finance the construction of a hotel complex, which will be undertaken by development consortium Concierge 3 Limited (a joint venture partnership between the Pickstock Group, Staycity and BSW Land & Property Ltd).
Under the terms of the deal, Premier Inn owner Whitbread and Staycity will operate independently with 60 per cent and 40 per cent of the complex’s rooms respectively. The property is expected to be open by 2021.
Dublin-based Staycity will operate the aparthotel side of the property under its premium Wilde Aparthotels by Staycity brand. The building will feature studios and one-bedroom apartments.
Meanwhile, Premier Inn will operate a 373-bedroom hotel, which will be its first in Paddington.
The scheme also has provision for a 27,000 sqft education facility, landscaping and open space.
Tom Walsh, CEO and co-founder of Staycity, commented: “We are delighted to be part of this exciting development opportunity. Paddington Station is London’s gateway to the West and is just 15 minutes from Heathrow airport. As well as being a burgeoning business area, leisure visitors can enjoy two royal parks within walking distance, the picturesque Little Venice and great links to London’s Notting Hill and West End.”
Jonathan Langdon, acquisition manager (central London) for Whitbread, added: “We’ve been exploring opportunities to invest in Paddington for some time now and are very excited at the prospect of gaining a presence for Premier Inn there. It’s a fantastic development in one of London’s most vibrant and well-connected areas and the hotel adds another quality zone-one location to our growing London portfolio. The new Premier Inn will make a positive contribution to the area by offering visitors greater choice, creating local jobs and spreading the positive knock-on benefits to local businesses that Premier Inn hotels bring.”
Kevin Vickers, investment director at M&G Real Estate, said: “Business travellers continue to seek well-connected and affordable central London accommodation. The £2 billion invested in Paddington in recent years has predominantly been invested in office and residential developments, positioning this hotel and aparthotel transaction as an attractive investment opportunity.”