Capilon Hotel Group has revealed it has acquired a Grade II listed vacant hotel in Paddington.
The company is set to refurbish the building and convert it into a new 80-room boutique upper upscale hotel.
The group has partnered with Prima, a Singapore based global private equity real estate company.
The company will use a co-loan of 19.5m from OakNorth and ASK Partners for the acquisition and refurbishment.
Capilon now operates 11 hotels across London, such as The Blandford Hotel in Marylebone and The Judd Hotel in Bloomsbury.
Capilon stated: “For over 20 years now, our small but dedicated team has delivered hotels that have all the things that you need, and none of the things you don’t, in order to offer the best value for money for our customers. This new site, situated on Hyde Park’s doorstep, embodies this approach perfectly, and will be an excellent choice for those visiting the capital for business or pleasure.
“After being impressed with both OakNorth and ASK’s reputation for backing experienced and entrepreneurial hoteliers, they were our clear funders of choice and offered us an impressive level of flexibility and transparency from start to finish.”
Ben Hall, Prima CEO, added: The strategic acquisition of this prime property not only signifies our focus on the resilient London hotel market but also positions us in one of London’s most attractive growing sub-markets.
“We’re confident this institutionally structured deal, coupled with the benefits of using a Singapore VCC investment structure will provide our investors with a unique risk-adjusted opportunity to invest into the United Kingdom’s real estate market.”