London hotel on sale for $343 million

The owners of a 400-room London hotel, currently being called the Hotel Debutesq, have put the property up for sale for around $343 million, reports UK's Hotel Owner.

Alex Hayward of Debutesq Group, said, "Although the hotel has seen substantial investment over the past two or three years and is enjoying strong occupancy levels, a great deal could be done to improve revenue performance and investment return."

In a statement, the company said there are various reconfiguration opportunities "which could enhance the property" including extending its 135,000-square-foot footprint.

London occupancy rates have been increasing in recent months, and London’s hospitality sector has enjoyed a strong return since the recession. With the exception of Paris, London is the only European gateway city where hotels are outperforming pre-crisis levels.

Hotel values in London and other prime European cities have increased substantially in recent years with strong interest from wealthy Chinese investors and Sovereign wealth funds in the Middle East.

Last year a Middle Eastern based private investment group paid over £300 million for a leasehold interest in the 447-room InterContinental on Park Lane.