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Whitbread has acquired Dorset House, a vacant office block on Stamford Street SE1, from Capital 38, and plans to convert it into a circa 400-bedroom Hub by Premier Inn hotel.
The new nine-storey, 90,000 sq ft building will mark Whitbread’s first Hub by Premier Inn hotel to open south of the River Thames.
The acquisition of Dorset House will also add to the 15 Hub by Premier Inn hotels currently trading in London.
So far in 2025 Whitbread has secured deals to acquire a former office building at 35 Red Lion Square in Holborn, which it plans to convert into a 165-room hub by Premier Inn hotel, and Phoenix House in Vauxhall for a 180-bed Premier Inn.
As part of Whitbread’s Force for Good sustainability strategy, all Whitbread-owned hotels will be powered by renewable electricity from 2025, and the company has a stated target to reduce water consumption per sleeper by 20% by 2030.
Across the UK and Ireland, Whitbread offers its customers a choice of more than 85,500 Premier Inn and hub by Premier Inn bedrooms from 850 locations and sees the long-term potential for 125,000 bedrooms in these two core markets, with London being an important focus for expansion.
RX London acted as the exclusive advisor to Capital 38 on the transaction. Whitbread’s property acquisition team dealt directly with the vendor.
Derek Griffin, head of Acquisitions for Whitbread, said: “Since launching our first Hub by Premier Inn in Covent Garden in 2014, we’ve built a successful network of 18 hotels across London and Edinburgh, offering guests affordable stays in prime city centre locations.
“As we’ve grown, we have been actively seeking the right opportunity south of the river and Dorset House represents a perfect fit. Its proximity to Waterloo and Blackfriars stations and the vibrant Southbank arts and culture district makes it an ideal location for both business and leisure travellers. With Dorset House now part of our secured development pipeline, we’re looking forward to working with Southwark Council to bring our vision to life.”
Griffin added: “With over two decades of experience converting vacant office buildings into successful Premier Inn hotels, we’re confident in our ability to deliver another outstanding Hub by Premier Inn hotel in a high-demand location for our guests.”
Khalid Sanad, director of Real Estate at Capital 38, concluded: “The sale of Dorset House is part of our broader strategy to recycle capital into new opportunities aligned with our long-term vision.
“The transaction also highlights the continued investment demand for prime real estate in strategic central London locations. The asset has performed well for us, and we are confident Whitbread will bring forward a compelling use for the site. RX London provided first-class advice throughout the process and delivered an excellent result.”
