Hotel Brands

Staycity and Premier Inn to open in £203m complex at London Paddington

Premier Inn and Staycity Group have been announced as the as the tenants of the £203m complex set to be built at London Paddington.

The 620-room hotel and aparthotel complex is expected to open by 2021.

Asset managers M&G has acquired the long leasehold interest of the development site and will finance the construction of the hotel complex to be carried out by development consortium, Concierge 3 Limited (a joint venture partnership between The Pickstock Group, Staycity and BSW Land & Property Ltd).

Whitbread, the owner of Premier Inn and Staycity will each take 30-year leases on five yearly inflation-linked rent reviews, operating independently with 60% and 40% of the rooms respectively.

Staycity, will provide the aparthotel side of the development under its premium brand Wilde Aparthotels by Staycity. Whitbread will provide a latest generation 373-bedroom Premier Inn hotel, which will be its first in Paddington.

Jonathan Langdon, acquisition manager Central London for Whitbread, said: “We’ve been exploring opportunities to invest in Paddington for some time now and are very excited at the prospect of gaining a presence for Premier Inn there. It’s a fantastic development in one of London’s most vibrant and well-connected areas and the hotel adds another quality zone-one location to our growing London portfolio.

“The new Premier Inn will make a positive contribution to the area by offering visitors greater choice, creating local jobs and spreading the positive knock-on benefits to local businesses that Premier Inn hotels bring.”

Tom Walsh, CEO and co-founder of Dublin-based Staycity, added: “We are delighted to be part of this exciting development opportunity. Paddington Station is London’s gateway to the West and is just 15 minutes from Heathrow Airport. As well as being a burgeoning business area, leisure visitors can enjoy two royal parks within walking distance, the picturesque Little Venice and great links to London’s Notting Hill and the West End.

This is M&G’s fifth transaction with Whitbread as a tenant, following a £100m funding deal to develop a 339-room hub by Premier Inn hotel on Tothill Street, Westminster, adding to the existing portfolio of Premier Inn hotels at Gatwick Airport North Terminal, Holborn and Wandsworth.

Back to top button