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BNP Paribas Real Estate (BNPPRE) has sold The Exhibitionist hotel in South Kensington for £10.625m to an undisclosed buyer.
Following a competitive bidding process, the 37-bed freehold boutique hotel on Queensberry Place was sold for 15% over its quoting price. 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. It became a hotel in the late 1980’s and underwent extensive refurbishment in 2015.
The Exhibitionist is located near the Natural History Museum (0.2 miles), and the Victoria and Albert Museum (0.3 miles). Hyde Park, the Royal Albert Hall as well as Knightsbridge and the Kings Road.
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.”
