Grosvenor Britain & Ireland has sold its 50% stake in the 189-bedroom Peninsula London hotel development at Hyde Park Corner for £107.5m.
The Hongkong and Shanghai Hotels (HSH) has acquired Grosvenor's interest in the development, which includes 24-28 residential apartments, following a restructure of what was previously a joint venture agreement. Grosvenor will retain the freehold of the property as part of its 300-acre London estate and receive a fixed rent from the hotel, together with a turnover element.
Planning permission for the hotel, which will be located adjacent to the five-red-AA-star, 93-bedroom Lanesborough London and will involve the redevelopment of 1950s and 1960s offices, was granted by Westminster City Council in April this year. Building work is expected to start next year, with the hotel due to open in 2021.
Clement Kwok, managing director and chief executive of HSH, described the deal as "a significant transaction" which reflects the company's optimism for the UK market.
"The Peninsula brand enjoys recognition as one of the leading luxury city hotel brands in the world and we believe the Peninsula London and residences will set new standards in luxury and service when the project is completed."
Peter Vernon, chief executive at Grosvenor Britain & Ireland, added that the Peninsular London will be "an economic boost" for the West End, with the forecast that it will deliver up to £60m to the city's economy annually.
"The building brings high-quality design to a prominent area of London, acting as a gateway to Belgravia."
The Peninsula London will feature a 140-seat rooftop restaurant on the eighth floor, two further restaurants, a ballroom for up to 350 guests, spa, four meeting rooms and parking for 104 cars.
Its entrance will be located on Grosvenor Place, via a colonnade linking the lobby to an internal palazzo-style courtyard.
Established in Hong Kong in 1928, Peninsula Hotels is one of the oldest luxury hotels groups in the world. It currently has 10 hotels. London will be the second in Europe, joining Paris. It has further hotels planned for Istanbul and Yangon.
The Lanesborough returns >>
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