Whitbread, the parent company of Premier Inn, the UK budget hotel group, has bought the freehold of 35 Red Lion Square, an office in London's Midtown, for conversion into its smaller-room hub by Premier Inn hotel brand.
The property, which is in a prominent location on the junction of Theobalds Road, Drake Street and Red Lion Square, WC1, was bought from the Royal College of Anaesthetists for an undisclosed sum understood to be around £25 million.
Set over eight storeys and comprising 47,500 square feet, the building has been the headquarters of the professional body responsible for the speciality of anaesthesia since 2006. Whitbread said it sees the potential for a hub by Premier Inn hotel of around 150 bedrooms.
Jonathan Langdon, senior acquisitions manager, Whitbread, said in a statement: “Hub by Premier Inn has been a huge success for Whitbread since we launched the brand in 2014. From a standing start we now offer our guests a choice of 18 great locations, 15 of which are in London, and see huge potential for the brand in the years ahead.
“The first site we ever opened was an office-to-hotel conversion on St Martin’s Lane in Covent Garden. We have completed many successful office-to-hotel conversions since, and we intend to bring this experience and track record to the redevelopment of 35 Red Lion Square."
Whitbread’s acquisition forms part of its expansion plans in the London market where a large part of Premier Inn’s pipeline is located. The company said it is actively searching for 40 locations for Premier Inn and hub by Premier Inn within the M25.
Whitbread says hub by Premier Inn hotels are designed for locations in major cities where property prices are relatively high but, thanks to its smaller room format, it is still able to generate "attractive long-term returns whilst providing affordable rooms for guests". The hotels range in size from a 60-bedroom hub by Premier Inn at Bank in the City of London to a 690-room hub at 5 Strand which is due to open in 2028.
Whitbread was advised on the acquisition of 35 Red Lion Square by Frame Real Estate Partners. The Royal College of Anaesthetists was advised by Newmark.