Singapore-based CapitaLand Ltd. has reportedly hired Jones Lang LaSalle to sell London's historic Cavendish hotel for about £250 million ($325 million). CapitaLand bought the 230-room property in 2012 for a reported £158.8 million.
A CapitaLand spokesperson told Bloomberg the company “constantly evaluate[s] opportunities to maximize returns to shareholders. We will make an announcement if there are any definitive agreements.” A representative of JLL declined to comment.
U.K. hotel investment surged after the June 2016 Brexit referendum as the falling pound attracted both tourists and international buyers. Investment in London hotels increased 23 percent in 2018 to more than £2.5 billion, according to research from broker Knight Frank.
Overall, London’s hotels reported like-for-like RevPAR up 3.6 percent year over year while occupancy reached 77 percent, up 1.7 percent, and average room rates rose 1.9 percent to £134.05, according to the latest U.K. Hotel Market Tracker: Q1 2019 from HVS London, AlixPartners and STR. Strong performance in the last two quarters lifted the last 12 months’ RevPAR 4.1 percent, despite a relatively subdued six months trading, the report noted. Q1 proved active for transactions, with £2 billion worth of hotels being acquired in some 91 transactions, compared with 85 the previous year. Major London deals in Q1 included the sale of four Grange hotels to Queensgate for £1 billion and the acquisition of Dalata’s Clayton Hotel, Aldgate for £91 million.