Private equity company Evans Randall has sold the freehold of the Croydon Park hotel to the local council off a guide price of £25m.
The four-AA-star, 211-bedroom London hotel, which made a loss of £20,000 in the six months to the end of June 2017, will continue to be operated by Kasterlee UK. Property Week reports the actual sale price was closer to £29.8m.
Councillor Simon Hall, cabinet member for finance and resources for Croydon Council, said: “This purchase will enable us to bring in additional income to the council, securing a new revenue stream to fund core services.
“At a time where government grant funding for local authorities continues to fall, we have to look at new and innovative ways to ensure we can provide services to residents. This purchase is one way to do it.”