Park Lane Hilton sold for £157m

Property company Land Securities has sold its controlling interest in the freehold of the Hilton on London's Park Lane to private property company London & Regional for £157m.

It is the first significant UK hotel sale since 11 September.

Chief executive Mark Collins said the deal had allowed Land Securities to "achieve a substantial release of equity from the London Hilton and to attract a good partner with relevant expertise in the hotel sector."

Consultant Insignia Hotels advised London & Regional and Abbey National Treasury Services, which led the financing. One analyst said Hilton would be more comfortable with its new owner, which was familiar with the hotel sector and would be co-operative towards investment and refurbishment programmes.

London & Regional already owns the Hilton at Green Park and Hilton's the Trafalgar, both in London.

Hilton's long lease on the 446-bedroom Park Lane hotel is unaffected by the change in ownership.

It runs until December 2033 at a current rent of about £8.1m a year.