The freehold interest in Z Hotels’ boutique hotel in London’s Leicester Square has been put up for sale with a guide price of £43m.
The hotel comprises 95 boutique bedrooms across four floors with a restaurant in the basement.
The deal will be structured as a sale and leaseback with a guaranteed 35-year lease to Z Hotels featuring a five-yearly reviewed rent, indexed to CPI, and a separate ground floor restaurant lease to Steak & Co.
Located at Garrick House, 3-5 Charing Cross Road, the site has undergone conversion from an office to reinstate the original use of the building as a hotel.
The hotel’s ESG credentials have been boosted by the installation of low carbon technologies including photovoltaics, heat recovery units and non-refrigerant water-cooled air conditioning. The hotel will be fully operational by June 2025.
Avison Young UK and JLL have been jointly appointed to market the opportunity. All parties declined to comment.
