Edmond de Rothschild’s Boscalt Hospitality Fund Buys London’s Old Bailey Hotel Development
Main Photo: The building as is
Date: July 2021
Name: TBA
Location: 15 Old Bailey, London, England, UK
Number of Keys: Expected to make 110 rooms
Seller: This building started life as the Spiers and Pond Hotel back in 1874, was sold to make offices for Friends Life Office in 1985. In 2013, Endurance Land were appointed Development Managers for 15 Old Bailey. The building comprised approximately 30,000 sq ft of predominantly office accommodation arranged over basement, ground and seven upper floors.
Endurance Land secured planning consent for an 83 bedroom boutique hotel and the property was sold on with this benefit at a 25% premium to book value.
Buyer: The JV hospitality real estate fund created by Edmond de Rothschild’s private equity arm and European hotel investor Boscalt has acquired a London hotel as its first asset.
The Boscalt Hospitality Fund has invested an undisclosed amount to buy the 15 Old Bailey asset. The property, built in 1874, is expected to be repositioned into an upper-upscale hotel featuring 110 rooms.
Edmond de Rothschild Private Equity said the acquisition is in line with the fund’s strategy of buying properties with ”high potential, upgrading them to build a strong portfolio of upscale to luxury hotels located in major European cities”. The team is now focused on making new acquisitions within continental Europe, it added.
Boscalt co-founders, Liza Masías and Jaume Tàpies said: “The team is currently in advanced discussions with an internationally renowned hotel operator that is envisioned to manage the hotel.
“This is a great time to invest in London, a city where booking rates are promising. The hotel construction pipeline is growing rapidly, which is an optimistic projection for the hospitality industry.”
Johnny El Hachem, CEO of Edmond de Rothschild Private Equity, said: “We are delighted with this first investment in a building with a rich history and personality, located in the heart of London. It is proof of the relevance of the team’s strategy and expertise, particularly in these difficult times”.
THPT Comment: This venerable old building, once called the Spiers and Pond Hotel back in 1874, has been on the market for a few years, so delighted to see that the Boscalt Hospitality Fund has finally done the deal. Spiers and Pond more or less started the concept of a hotel chain….After Old Bailey, they opened the Bailey’s Hotel, Gloucester Road, London; the Grand Hotel, Brighton; the Queen’s Hotel, Eastbourne; the Palace Hotel, Hastings; the Victoria Hotel; Manchester; the Grand Hotel, Scarborough; the Royal Clarence Hotel, Exeter; and the Bull’s Head Hotel, Aylesbury. The company eventually became a part of Grand Metropolitan Hotels’ portfolio.
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