Dutch pension fund manager APG and London residential specialist London Central Portfolio (LCP) have launched a UK hotel joint venture, kicking off with the acquisition of the Harrington Hall Hotel in South Kensington.
The partnership will target hotel properties in Central London 'catering for the budget-conscious business and leisure traveller', according to both parties.
Robert-Jan Foortse, head of European property investments at APG commented: 'APG is delighted to be able to further broaden its hospitality investment programme. The Harrington Hall Hotel in South Kensington will act as a cornerstone for a new lifestyle brand of all-suite hotels which will be located in key micro-markets across Prime Central London.'
'LCP is delighted to have secured the Harrington Hall Hotel in South Kensington, as the first acquisition in the new venture, which is planned to open in spring 2022,' said Naomi Heaton, founder and CEO of LCP. 'LCP will be responsible for its design, development and operation and the intention is to follow this up shortly with further acquisitions across central London’s prime neighbourhoods.'
'With our partner, LCP, we intend to create a new type of accommodation for the prime central London market which is cutting edge in terms of place-making, whilst also promoting the highest standards in environmental and social responsibility,' added Foortse.
APG is an active investor in the hotel sector, investing in the citizenM hotel chain since inception 11 years ago, and recently ramping up its exposure to the pan-European sector through Archer Hotel Capital.
APG also has an investment in Dutch-based The Student Hotel, holds private investments in hotels and hotel chains in Brazil and India, as well as investments in various publicly-listed hotel companies around the world. APG’s hotel investments currently amount to over €2 bn.