Yotel will continue to operate the property at 96-100 Clerkenwell Road, Farringdon, under a long-term management agreement.

Yotel London Clerkenwell is the Yotel group’s first central London hotel and features 212 cabins and Komyuniti, an all-day restaurant, bar and co-working space which offers street-food inspired sharing plates, craft beers and cocktails.

The hotel also has two meeting rooms, a 24/7 gym and Grab+Go snack bar.

Rob Codling, senior fund manager for LGIM Real Assets, said: 'This is the fund’s first operational hotel acquisition seizing a rare opportunity to acquire the hotel out of administration.

'The asset is located in a prime area of London, a short walk from Farringdon Station which with the opening of the Elizabeth Line (Crossrail) will make it one of the busiest stations in the UK, providing a fantastic opportunity to capitalise on the recovery of the London hotel market following the Covid pandemic.'

In addition to the hotel, the property comprises 3,000 ft2 (280 m2) of retail space and five apartments totalling 5,000 ft2. The building was completed in May 2020 and the hotel has been trading since August 2020. The property has strong ESG credentials with a Breeam Excellent and EPC A rating.

The transaction is one of the first central London hotel transactions since the onset of the Covid pandemic. LGIM said that its 'lean luxury' offering was well placed to be at the forefront of the London hotel market recovery.

Paul Davies, partner at James Cowper Kreston, said: 'We are pleased to have concluded a timely sale of the hotel following our appointment of Administrators in December.

'There remains significant interest in the hotel sector for well-located and innovative hospitality assets such as Yotel London Clerkenwell.'

Yotel is a UK based hotel group with a portfolio which currently comprises 15 hotels globally including New York, Singapore, Istanbul Airport, San Francisco, Edinburgh and Amsterdam. Hotels in Glasgow, Porto and Miami are due to open this year.

Shaun Roy, partner and head of hotels at Knight Frank, said: 'We are thrilled to have completed this landmark deal in unprecedented market circumstances with both the vendor and purchaser happy with a successful outcome.

'This sale received significant traction and we had very strong interest from a wide variety of capital sources, which only goes to show the underlying strength and belief in the London hotel market and innovative brands such as Yotel.'

L&G was represented by Constantine Real Estate and Gerald Eve. Knight Frank acted for James Cowper Kreston Administrators.