Whitbread has acquired the freehold of a vacant office block on Stamford Street in South London with a view to transforming it into a circa 400-bedroom hotel.
Whitbread purchased Dorset House from Capital 38 for an undisclosed price and intends to retrofit the nine-storey, 90,000 sq ft block into a latest format hub by Premier Inn hotel, subject to planning permission.
Derek Griffin, head of acquisitions for Whitbread, said: “Since launching our first hub by Premier Inn in Covent Garden in 2014, we’ve built a successful network of 18 hotels across London and Edinburgh, offering guests affordable stays in prime city centre locations. As we’ve grown, we have been actively seeking the right opportunity south of the river and Dorset House represents a perfect fit. Its proximity to Waterloo and Blackfriars stations and the vibrant South Bank arts and culture district makes it an ideal location for both business and leisure travellers.
“With Dorset House now part of our secured development pipeline, we’re looking forward to working with Southwark Council to bring our vision to life. With over two decades of experience converting vacant office buildings into successful Premier Inn hotels, we’re confident in our ability to deliver another outstanding hub by Premier Inn hotel in a high demand location for our guests.”
Khalid Sanad, director of Real Estate at Capital 38, added: “The sale of Dorset House is part of our broader strategy to recycle capital into new opportunities aligned with our long-term vision. The transaction also highlights the continued investment demand for prime real estate in strategic central London locations. The asset has performed well for us, and we are confident Whitbread will bring forward a compelling use for the site. RX London provided first-class advice throughout the process and delivered an excellent result.”
RX London acted as adviser to Capital 38 on the transaction. Whitbread’s property acquisition team dealt direct with the vendor.
