The freehold of the four-star Leonardo Hotel at London Heathrow Airport has been put up for sale with a guide price of £30m.
The purpose-built hotel, which was refurbished in 2019-2020, comprises 230 e-suite bedrooms, 14 meeting and conference rooms, a bar, restaurant with 140 covers, and a fully equipped fitness area, as well as two spa treatment rooms.
Situated on Bath Road, just a five-minute shuttle ride from Terminals 2 and 3, the hotel is currently let on a fully repairing and insuring lease to Leonardo Hotels – with a parent company guarantee from Fattal Hotels – and is subject to five-yearly RPI linked upwards only rent reviews. The passing rent is £1.7m and this is expected to increase to more than £2m at the next review in March 2025.
There is just over 15 years remaining on the lease and an incoming purchaser will have the option to secure vacant possession through exercising a landlord only break clause effective from 1 February 2026, subject to providing six months’ prior notice.
Shaun Roy, partner and head of hotels at Knight Frank, which has been appointed to market the asset, said: “The Leonardo Hotel Heathrow represents an excellent opportunity to acquire a premium property in one of Europe’s busiest travel hubs. Additionally, given the landlord only break clause, it presents a highly attractive proposition to owner operators to enhance value through inserting an alternative operator and or brand.”
