Invesco Real Estate and YardNine have signed an agreement for lease with Whitbread for a new 366-bedroom hotel and restaurant as part of the 40 Eastbourne Terrace development.
The hotel will comprise a 275-bedroom Premier Inn, a 91-bedroom hub by Premier Inn and Whitbread’s premium Bar + Block Steakhouse restaurant. This is the first time all three brands will occupy the same building.
Whitbread has a 373-bedroom Premier Inn hotel under construction in Paddington Basin at North Wharf Gardens and a 294-bedroom hub by Premier Inn hotel coming to 191 Old Marylebone Road.
Mark Younger, Director of YardNine commented: “Despite the disruption to daily life over the last year, we are beginning to see the green shoots of normality returning, in a post-Covid environment where increased flexible working might lead more individuals to live further out from city centres, well-located hospitality assets play a key role in ensuring we can still collaborate and benefit from face-to-face meetings. Located adjacent to Paddington station, who better to partner with than Whitbread to deliver high-quality accommodation to this increasingly popular area of London.”
Richard Chambers, Senior Director – Investment Management, Europe at Invesco Real Estate, added: “Eastbourne Terrace is a truly unique development in the heart of Paddington. The asset’s strong real estate fundamentals mean we are confident in the ability to attract the best tenants and operators, brands and covenants, as development progresses. This is demonstrated today with Whitbread, who is a well-known, leading operator. As a long-time investor in hotels, Invesco Real Estate believes strongly in this sector especially given its attractive long income attributes coupled with the combination of a strong brand and operator covenant. We are delighted to be working alongside YardNine and Whitbread as we continue to realise the full potential of Eastbourne Terrace.”
Jonathan Langdon, Acquisitions Manager for Central London at Whitbread, commented: “Our business strategy is to invest in locations where we expect to see strong, long-term demand for our Premier Inn and hub by Premier Inn bedrooms. Paddington is one such market where we see this opportunity for strategic growth. The 40 Eastbourne Terrace development brings our three leading brands together in one building and grows our presence in the Paddington catchment to over 1,000 bedrooms. It is a fantastic addition to our network of hotels in central London and demonstrates our confidence in the future success of the capital.”
Construction is expected to start in Q2 2021. The hotel is anticipated to open in late 2023.