The announcement coincides with a recent Deloitte Hotel Benchmark™ Survey which shows occupancy and rooms rates in London to be the highest in Europe, underpinning rental yield and the capital value of such an investment.
The Pestana Chelsea Bridge Hotel rooms are the first sale and leaseback properties offered in the UK by an international hotel group. Pestana, a family owned business with a heritage of 35 years as hoteliers, will own and operate the hotel after completion in September 2009. This is in contrast to other hotel style investments in the UK, which are designed by developers, who then outsource their hotel operations. Pestana’s hospitality experience, service ethics and meticulous standards provide extra assurance to investors that the hotel will be professionally run and marketed through its international network.
London hotels already have the highest occupany rates in Europe at 83.6%, according to the Deloitte Hotel Benchmark™ Survey (November 2007). Furthermore, a recent report from Price WaterhouseCoopers shows that over the last five years room rates in London have increased by 18%, occupancy rates by 12% and RevPAR (available room revenue per room) by 33%.
/more
The flagship hotel is located close to the River Thames, next to Battersea Park and opposite the iconic Battersea Power Station. It will be a four star hotel with 218 keys, of which just 66 rooms are for sale.
Each luxury hotel room will be 30 sq.m. and feature contemporary interior design fashioned in muted tones with five star fittings such as oak wardrobes and marble tiles. Each room will include a kingsize bed, sofa and coffee table, desk and chair for working, wireless internet connection, a small kitchen area (microwave cooker, sink, fridge, cupboards and cutlery drawers) for preparing snacks or light meals, LCD TV and DVD Player, and bathroom with separate bath, shower and LCD screen.
The rooms are available on a sale and leaseback basis with a commercial lease of 990 years. Prices start at £295,000 plus VAT including furniture and furnishings. A Pestana room qualifies as commercial property for pension purposes. UK investors may therefore choose to use a Self-Invested Personal Pension (SIPP) to acquire the room.
Room rates at the hotel are anticipated to be between £130 and £160 per night.
Owners will have full access to the excellent on-site facilities which will include an international fine dining restaurant with an award-winning Pestana chef, bar, health and beauty club with gymnasium, spa and indoor pool and full conference facilities. Concierge services will also be available.
The hotel will manage the rental of the rooms and owners will receive 50% of net room revenue with a gross 6% p.a. guaranteed return for the first 2 years as well as an option of 30 days personal usage of the hotel. There is also the opportunity to use 15 of these 30 days at Pestana’s worldwide hotels in Portugal, Brazil, Argentina, Cape Verde, Mozambique and South Africa.*
Peter Booth, Managing Director of Pestana Group says: “Buying a room at The Pestana Chelsea Bridge Hotel is a way of investing in London’s burgeoning hotel and property market without an enormous outlay. It also provides a convenient base in London with flexible usage alternatives.”
/more
Marketed and sold exclusively by UK agents Premier Resorts, Managing Director Russell Bragg says: “With an average 13.3% year on year capital growth in London’s property prices over the last 30 years** and good rental yields expected going forward, we think the Pestana Chelsea Bridge offers a highly attractive package for investors.”
The 200-acre Battersea Park with its wide green spaces, lakes, athletics track, tennis courts and tree-lined walkways is just a few moments away. It is also adjacent to Battersea Power Station which is being regenerated to include restaurants, housing, hotels, retail, conference and exhibition space, which will impact positively on local property prices.
A show room will be available to view at Premier Resorts’ offices in Richmond. The address is 15 Little Green, Richmond, Surrey TW9 1QH.
ENDS
*The use of the worldwide hotels offer will occur after the guaranteed return period expires (years 3 -5 after which time this will be reviewed).
**London Residential Review – Winter 2008, Knight Frank
Editors Notes:
Pestana currently operate 82 four and five star hotels and Pousadas de Portugal in Portugal, Brazil, Argentina, Cape Verde, Sao Tome e Principe, Mozambique and South Africa. It also has eight real estate developments, four golf courses with a further one planned, a gambling concession for the island of Madeira (the Madeira Casino), an airline (Euro Atlantic) and four tour operators.
Media Contacts
Vicky Goodall or Caroline Brown at P1 Communications Ltd
Tel: +44 (0) 208 939 1771/1743
Email: vicky.goodall@p1communications.com or caroline.brown@p1communications.com
Exclusive UK Sales Agent Contact Details:
Premier Resorts
Tel: +44 (0) 208 940 9406
Web : www.pestana-chelseabridge.co.uk
Email: info@premierresorts.co.uk