Text size:

  • Small
  • Normal
  • Large
The W hotel, which opened in February, is being sold by the Northern Ireland-based developer McAleer & Rushe. Simon Dawson / Bloomberg News
The W hotel, which opened in February, is being sold by the Northern Ireland-based developer McAleer & Rushe. Simon Dawson / Bloomberg News

Qatar checks in at W Leicester Square

The W hotel in London has been sold to a Qatari investor for about 200 million.

The W hotel in Leicester Square, one of London's most high-profile recent openings, will be sold to an unnamed Qatari-based investor for close to 200 million (Dh1.1 billion).

The luxury 192-room property that opened in February is being sold by McAleer & Rushe, a developer based in Northern Ireland.

The W London hotel, said to have already become a popular hangout for celebrities, is located on the corner of Leicester Square and Wardour Street, on the site of the former Swiss Centre.

Jones Lang LaSalle, which advised on the sale along with Steerforth Partners, said the purchase price reflected a net initial yield of almost 4 per cent. In addition to the hotel, managed by Starwood, the building also houses 11 luxury two and three-bedroom penthouse residences and a 35,000 square foot M&M's World sweet shop.

"The W hotel received a lot of interest from international investors and is the latest evidence that the market for prime central London property remains very robust," said Robert Millar, the investment partner at Steerforth Partners.

Qatari investors have poured a substantial amount of funding into London's property market.

London's Olympic Village was sold in a US$903m (Dh3.31bn) deal last month to Qatari Diar and the British developer Delancey.

Qatari Diar paid 959m for the Chelsea Barracks site in London in 2008, at the time the largest amount paid for property in the city.

The Shard, the tallest tower in the UK, is majority owned by Qatari investors including Qatar National Bank. Qatar Holding last year bought the London department store Harrods.

"London remains the focus for global capital and this sale reinforces the international appeal of London for real estate investors, recognising the long-term strength of the London hotel market," said Jon Hubbard, the managing director of Jones Lang LaSalle Hotels. The current lack of stock continues to drive competition for good quality assets."

Hotel property transactions worldwide surged by 140 per cent last year to $24.3bn following a difficult year in 2009 as the tourism sector was hit hard by the global downturn.

rbundhun@thenational.ae

Back to the top

More articles


Editor's Picks

 Marina Square apartments Reem Island: Q1 2% rise. Studio - Dh65-68,000. 1BR - Dh75-95,000. 2BR - Dh110-145,000. 3BR - Dh170-190,000. Q1 2013-Q1 2014 no change. Sammy Dallal / The National

In pictures: Where Abu Dhabi rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Abu Dhabi have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 A Brabus Mercedes 6x6 Sports Utility Vehicle is readied for display during Auto China 2014 in Beijing, on April 20. Adrian Bradshaw / EPA

In pictures: Auto China 2014 exhibition

Leading automakers have gathered in Beijing for the kickoff of China’s biggest car show, but lacklustre growth and environmental restrictions in the world’s largest car market have thrown uncertainty into the mix. More than 1,100 vehicles are being showcased.

 The New York Stock Exchange. Rising interest rates will shift momentum away from bonds and back towards risk assets such as stocks. Richard Drew / AP Photo

Plan ahead for rising interest rates

It is now over five years since the majory central banks slashed interest rates to record low but that is all about to change. So, how will rising interest rates affect you?

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National