CoStar News
Whitbread has bought 5 Strand, a former Westminster council office near Trafalgar Square in central London, for a circa £200 million Hub by Premier Inn hotel.
Whitbread said the purchase and development are being funded from the group’s existing cash resources and will include one of its Bar+Block steakhouse restaurants. Subject to planning, the hotel and restaurant is expected to open in 2027.
With a total investment of over £200 million, including construction and related costs, Whitbread said the development reflects its commitment to “continue to invest in expanding its presence in the popular London market where a significant proportion of Premier Inn’s future pipeline is located”.
The site had been pencilled in as a luxury Park Hyatt comprising a 200-bedroom, 11-storey hotel with a ground floor lounge and restaurant, and an all-day restaurant on the top floor.
The current eight-storey building, built in the 1980s, was previously let as offices to Westminster City Council.
The site was sold in 2018 by BlackRock Real Estate for around £90 million and a new hotel scheme had been brought forward through a joint venture between property firms Clivedale and Indian developer ABIL.
The building was the headquarters of Landsec before being occupied by Westminster City Council.
Whitbread said the Hub by Premier Inn brand was first introduced in 2014 and now has a total of 2,431 open rooms which “performed strongly in full year 2022 and continue to score highly” with its guests. It says Hub by Premier Inn is designed for locations in major cities where property prices are relatively high but, thanks to its smaller room format, is still able to generate attractive long-term returns while providing affordable rooms for guests.
Alison Brittain, chief executive, said in a statement: “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.”