UK real estate fund manager Frogmore has announced plans to apply for planning permission to transform a site on Ufford Street in London Southwark into a 275-bedroom hotel.
The real estate fund manager, behind the South Place hotel operated by D&D London which Frogmore sold to Chinese investors earlier this year for £67m, has completed a £14.4m loan with OakNorth Bank to acquire the site.
The capital has been used to acquire the cleared site on Ufford Street, adjacent to the Lewisham Southwark College, and submit planning permission to develop a hotel.
There are a number of hotel projects and schemes currently under construction in Southwark, including the conversion of the former Tower Bridge Magistrates' Court into a 200-bedroom hotel, set to open in 2019 and operate under Marriott's independent Autograph Collection, Hilton's Hampton; a third Hoxton hotel; and a £28m 218-bedroom aparthotel from Marlin Apartments. However, the area still has one of the lowest levels of hotel bedroom supply among key central London boroughs.
Frogmore currently owns assets such as the Notting Hill Gate estate, Stratford Shopping Centre, and Weston House in Holborn.
Jo Allen, chief executive of Frogmore, said: "Southwark has been experiencing a shortage in hotel room supply for several years. In Kensington and Chelsea, there are three times as many hotel rooms. In Westminster, there are more than seven times. Our hope is that we can secure planning permission to build a hotel here and help fill this gap with a new 275-bedroom hotel on the site."
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