The two freehold hotels, Club Quarters St Paul’s and Club Quarters Gracechurch, have a combined 468 keys. St Paul’s is the largest with 265 rooms. They are both located within the City of London and focus predominantly on corporate membership business. Both hotels are managed by Club Quarters, a US operator who specialise in business traveller hotels. Chelsfield aim to sell the company that owns both hotels which has the benefit of a stapled-finance package that will be transferred to the buyer. The terms of the financial package are near-on impossible to replicate in today’s constrained debt market.
Dominic Mayes, head of hotels at Knight Frank comments; “Demand for quality central London hotel assets is currently very strong and we anticipate a high level of interest in these assets, in particular from overseas buyers. Both hotels are freehold, in excellent locations and have strong cash flows backed by operator guarantee provisions and offer a purchaser good growth prospects. The stapled debt package included in the sale will also no doubt help.”
Knight Frank is advising Chelsfield Partners LLP.
