4C Hotel Group has bought The Exhibitionist hotel in South Kensington for £10.625 million. The seller was an undisclosed private trust client of BNP Paribas Real Estate.
The 37-bed freehold boutique hotel on Queensberry Place sold for 15% over its quoted price reflecting a net yield of just over 2%. It is the first time the freehold of the property has been sold for over 75 years.
The hotel is let on a triple net lease for a further 15 years, expiring March 2037 with four-yearly upward only rent reviews. It generates a current annual rent of £237,500.
The property dates back to 1876 and formerly comprised two interconnecting Victorian town houses arranged over lower ground, raised ground and five upper floors. The property became a hotel in the late 1980s and underwent extensive refurbishment in 2015.
What They Said
Richard Talbot-Williams, senior director, hotels at BNP Paribas Real Estate said: “Investor sentiment towards rarely traded prime London hotel assets has remained extremely robust and durable through the pandemic period, a time during which there has continued to be a very limited supply of ‘proceedable’ hotel investment opportunities. The competitive nature of the bidding for this prime town house hotel from both domestic and foreign buyers demonstrates a very high level of future confidence in the success of London hotels, in which we are great believers.”