Singaporean property billionaire Asok Kumar Hiranandani’s Royal Group of Companies has bought a listed former NatWest bank on London's Piccadilly with plans to convert it into a £1,000 per night luxury hotel opposite the Ritz.
The Royal Group bought the building at 63-65 Piccadilly for £65 million from Trophaeum Asset Management and plans to invest around a further £45 million its first London site.
It wants to develop a 50-room boutique hotel at the 102-year-old Grade II-listed Portland stone building.
Michael Elliott advised on the sale.
Speaking to Forbes Asia, Hiranandani he expected to charge £1,000 per night and said there was room for more luxury hotels in London's West End because “London’s tourist arrivals are growing like crazy”.
He said the hotel will designed by Ritchie Design Partners with completion by the end of next year.
Cristina Balekjian, director of hospitality analytics at CoStar said: "This deal further underlines London’s position for high-net-worth individuals, with hotels being particularly attractive, given their aspirational value in addition to potential returns longer term. The proposed luxury hotel at the former NatWest Bank will add to the ever-evolving luxury hotel supply landscape, which has experienced a strong upswing in openings in recent years as more brands look to be present in the capital amid growing global wealth and tourism numbers. Investment in the luxury hotel sector is likely to continue as it tends to be resilient, with hotels at the upper end of the market able to command significantly higher average daily rates than they did five years ago."
