Main Photo: The new dual-brand Premier Inn, under construction
Date: February 2021
Location: Eastbourne Terrace, by Paddington Station, London, England, UK
Name: Premier Inn and Premier Inn Hub – opening late 2023
No. of Keys: 275 and 91
Seller: Invesco Real Estate acquired 40 and 50 Eastbourne Terrace on behalf of one of its long-standing US separate account clients in July 2018,
Buyer: Whitbread has taken the lease to open a 366-bedroom hotel and restaurant as part of a major mixed-use development at 40 Eastbourne Terrace next to Paddington Station in London.
The hotel will comprise a 275-bedroom Premier Inn, a 91-bedroom Hub by Premier Inn and a Bar + Block Steakhouse restaurant, the first time all three brands will occupy the same building.
Construction is due to commence in Q2 2021 and the hotel is anticipated to open in late 2023. Whitbread said it is investing heavily in Paddington in response to strong demand from business and leisure guests. The group also has a 373-bedroom Premier Inn under construction in Paddington Basin and a 294-bedroom Hub by Premier Inn coming to Marylebone Road.
The redevelopment of the two sites will provide 75,000 sqf of Grade A office accommodation with 10,000 sqf of retail space and seven mews houses, as well as the hotel. The scheme has been designed by Sheppard Robson.
Mark Younger, director of property development and asset management company YardNine, said: “In a post-Covid environment where increased flexible working might lead more individuals to live further out from city centres, well-located hospitality assets play a key role in ensuring we can still collaborate and benefit from face-to-face meetings. Located adjacent to Paddington station, who better to partner with than Whitbread to deliver high-quality accommodation to this increasingly popular area of London.”
Richard Chambers, senior director – investment management, Europe at Invesco Real Estate, said: “As a long-time investor in hotels, Invesco Real Estate believes strongly in this sector, especially given its attractive long income attributes coupled with the combination of a strong brand and operator covenant. We are delighted to be working alongside YardNine and Whitbread as we continue to realise the full potential of Eastbourne Terrace.”
Jonathan Langdon, acquisitions manager for central London at Whitbread, said: “Our business strategy is to invest in locations where we expect to see strong, long-term demand for our Premier Inn and Hub by Premier Inn bedrooms. Paddington is one such market where we see this opportunity for strategic growth. The 40 Eastbourne Terrace development brings our three leading brands together in one building and grows our presence in the Paddington catchment to over 1,000 bedrooms. It is a fantastic addition to our network of hotels in central London and demonstrates our confidence in the future success of the capital.”
THPT Comment: Serious interest in this area of London, long neglected by top-notch hotels at both the five-star and budget level, which with the Paddington Basin development and The Whiteley will make exciting reading for new hotel development over the next few years.
First Seen: The Caterer
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