Premier Inn Paddington
London's Paddington Neighborhood Prepares For Dual-brand Hotel
London's Paddington neighborhood is getting a new 620-room hotel and hybrid "aparthotel" complex. The dual-brand Premier Inn and Staycity property is expected to open by 2021.
UK-based investment manager M&G has acquired the long-leasehold interest of the development site and will finance the development of the hotel complex. The construction will be carried out by development consortium Concierge 3 Limited (a joint venture partnership of The Pickstock Group, Staycity and BSW Land & Property Ltd.). The capital is provided by the £4.1-billion M&G Secured Property Income Fund, which invests in UK real-estate assets rented on long-term leases, usually with rents that increase in line with inflation.
M&G Secured Property Income Fund
Under the terms of the deal, Whitbread, the owner of Premier Inn, and Staycity will each take 30-year leases on five yearly inflation-linked rent reviews, operating independently with 60 percent and 40 percent of the rooms, respectively.
The ongoing transformation of the area and its transport links have boosted Paddington's desirability as an office and leisure location, strengthening demand for accommodation from business and leisure visitors. The mixed-use development plan also has provision for a 27,000-square-foot education facility, landscaping and open space.
Staycity will operate the aparthotel side of the development under its premium brand Wilde Aparthotels by Staycity. Whitbread will oversee the 373-room Premier Inn hotel, its first in Paddington.