The Chapter Hotels - Lancaster Gate 36 Lancaster Gate 46 Room Hotel London W2 3NA £17,500,000 (£380,435/Room) 7% Net Initial Yield

The Arbor Hotel, a distinguished property located at 36 and 37 Lancaster Gate, presents a compelling investment opportunity. This 19th-century building, which underwent a light refurbishment in 2023, combines historic architectural charm with modern operational readiness. The hotel offers 46 well-appointed bedrooms and essential food and beverage facilities, all within a highly desirable London location. The property’s construction, featuring traditional load-bearing brick walls and a stucco façade, speaks to its enduring quality and classic aesthetic.
The hotel is comprised of two buildings constructed with traditional load-bearing brick walls, ensuring structural integrity. The front elevation features an elegant
stucco façade, characteristic of the area’s classic architecture. Access to the hotel is provided by two separate porches at ground level. A notable architectural feature is the balustrade balcony located on the first floor. The windows at the front of the property are single-glazed timber sash, maintaining the building’s historical character. The roofing is a combination of a mansard and flat roof. Furthermore, the building is set back from the pavement and includes three pavement vaults, offering potential for additional utility or storage.
The Arbor Hotel represents a turn-key asset with a strong foundation in a prime location. Its recent light refurbishment and well-documented construction details make it an attractive proposition for investors seeking a quality hotel property.
The vendor has signed a lease agreement with an operator for a 15-year term. Key details of the agreement include:
· An estimated annual net income of £1 million.
· The operator will be responsible for all maintenance, management, and the replacement of furnishings every five years.