Z Hotels has appointed Avison Young UK and JLL to jointly sell sell the freehold interest in its Leicester Square property, a boutique hotel in London’s West End.
Structured as a sale-and-leaseback, offers are invited at a guide price of £42 million for the freehold interest, with a guaranteed 35-year leaseback to Z Hotels.
The hotel has 95 boutique bedrooms across four floors, with a basement restaurant. The proposed hotel lease is structured around a 5-yearly reviewed rent, indexed to the consumer price index and a separate ground floor restaurant lease to Steak & Co.
Located at Garrick House, 3-5 Charing Cross Road, the site has undergone conversion from an office to reinstate the original use of the building as a hotel. The hotel has been designed to provide maximum energy efficiency and will be fully operational by June 2025.
The hotel will operate with low environmental impact, with ESG credentials boosted by the installation of low carbon technologies including photovoltaics, heat recovery units and non-refrigerant water-cooled air conditioning.
All parties declined to comment.