Constellation Hotels has recently acquired the InterContinental London Park Lane hotel for the amount of GBP 400 million. Constellation is backed by a Qatari consortium, according to an anonymous source close to the transaction reported to Reuters.
The deal involves two parts, the first being a 57 year lease for the 447 bedroom hotel amounting to GBP 301.5 million. The second part involves the freehold, which is owned by the Crown Estate, amounting to GBP 100 million. The Crown Estate is the property company that manages the assets of the Queen.
The GBP301.5 million is 62% above the book value of the hotel, which is a clear indication of the demand over the London real estate, especially five star hotels. There were six other bidders for the property which Constellation eventually landed.
Qatar has been quite active in the UK market, purchasing the Shard skyscraper, retailer Harrod's Department Store and the Athlete's Village in the Olympic Park in East London.
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