Whitbread has acquired a freehold property on the Strand in central London, located just off Trafalgar Square for a total investment of £200 million.
Subject to planning, 5 Strand will become the latest hub by Premier Inn hotel in the estate and is expected to open sometime during 2027.
The purchase and development are being funded from the Group’s existing cash resources and will also include one of the Group’s popular Bar+Block steakhouse restaurants.
The £200 million includes construction and related costs and underlines the group’s confidence in the hub by Premier Inn concept. The brand was first introduced in 2014 and now has a total of 2,431 open rooms. It is designed for locations in major cities where property prices are relatively high but, thanks to its smaller room format, is still able to generate attractive long-term returns whilst providing affordable rooms for guests.
5 Strand was previously earmarked for a Park Hyatt hotel.
What they said
Alison Brittain, CEO, said: “I’m delighted that we’ve been able to acquire this iconic location, which is set to become our latest hub by Premier Inn hotel. It is in a prime position and is perfect for the hub brand which is continuing to perform well. The purchase reinforces our confidence in the long term potential of the London market, the hub by Premier Inn brand and the growth prospects of our UK business.”