Whitbread to invest £200m in Strand Hub by Premier Inn
Whitbread has acquired the freehold of 5 Strand in central London, just off Trafalgar Square, with plans to turn it into a Hub by Premier Inn hotel.
Subject to planning, the hotel is expected to open in 2027 and will feature a Bar+Block steakhouse restaurant. The purchase and development are being funded from the group's existing cash resources.
The group said that the property represented a total investment of over £200m, including construction and related costs.
The hotel was previously anticipated to be a Park Hyatt after BlackRock UK Property Fund sold the property to a joint venture between property companies ABIL Group and Clivedale in 2018 for more than £90m.
The Hub by Premier Inn brand was launched in 2014 and now has 2,431 rooms. The brand is designed for city locations with smaller rooms to be more affordable.
Whitbread chief executive Alison Brittain said: "I'm delighted that we've been able to acquire this iconic location, which is set to become our latest hub by Premier Inn hotel. It is in a prime position and is perfect for the hub brand which is continuing to perform well. The purchase reinforces our confidence in the long term potential of the London market, the Hub by Premier Inn brand and the growth prospects of our UK business."
Brittain announced earlier this year that she would be stepping down from her role at Whitbread, with Domino's Pizza boss Dominic Paul to take over as the company's next chief executive.