Magnificent acquires King's Cross Travelodge for £70m

Hong Kong-based Magnificent Real Estate has acquired the Travelodge London King's Cross Royal Scot hotel from Henderson Global Investors for £70m.

The six-storey, 408-room Travelodge was bought by King Express Development, a subsidiary of Magnificent. It is the company's first London acquisition following hotel and property investments in Asia.

William Cheng Kai-man, chairman of Magnificent, said: "We are probably the first company to buy a property in London amid the Brexit overhang. The uncertainties provided the company an ideal opportunity to get into the high-demand hotel sector in London, and the falling currency has made the deal more attractive.

"The cheaper currency will bring more tourists and investors to London, a city that is known for its rich heritage, lifestyle, architecture and asset protection."

The company sees the deal as an "undervalued, but ideal, acquisition opportunity". It is considering increasing the total floor area and number of rooms at a later stage through extensions and redevelopment.

Travelodge was unavailable for comment.

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