Vivion buys iconic London hotels for €300m

Hotel and office investor Vivion, which focuses on hospitality assets in the UK and office properties in Germany, has purchased two prime London hotels from the former Qatari prime minister.

Vivion paid £255 mln (€300 mln) for the five star Sanderson and St. Martins Lane hotels, in deals struck with the family office of Sheikh Hamad bin Jassim Al Thani.

The two properties were created by hotelier Ian Schrager and his partner Steve Rubell in the 1980s as part of the Morgans Hotel Group, and were both designed by Philippe Starck. Feted as prime movers in the boutique hotel market, they were sold to Capital Hill Hotels, a Middle Eastern holding under the Sheikh's control, in 2011 for a reported £192 mln.

Occupying a listed 1960s building, The Sanderson, with 150 keys, saw its rooms undergo a major design makeover by Tim Andreas in 2014. The St. Martins Lane hotel, featuring a pop-icon facade and situated near Leicester Square, comprises 204 rooms and suites.

In a statement on its website, Vivion announced it was also selling one of its 'London hotels for a total consideration of £90 mln, representing a 28% premium to its current value and 36% above acquisition cost'.

The sale, alongside the proceeds from Vivion's first bond, issued August 2019, would serve to finance the double deal, the company said.

Vivion added: 'Following completion of these transactions, Vivion’s portfolio in Greater London will comprise 16 hotels.

'In Germany, Vivion is actively pursuing a number of transactions, which will be funded by the proceeds from its second bond, issued in October 2019.'


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