The new year has started off with a bang in London's hotel market as Mallorca, Spain-based RIU Hotels & Resorts has acquired the 494-room The Westminster, Curio Collection by Hilton for £290 million ($389 million), according to investment bank AHV Associates.
The seller is a partnership consisting of BHP, PPF Real Estate and Westmont Hospitality. The deal has a price-per-key value of £587,000, which CoStar data shows is more than a 50% increase in value from when the asset last was transacted in January 2017. Westmont and partners acquired it then for £187.5 million or approximately £379,500 per key.
RIU has renamed the property the Hotel RIU Plaza London The Westminster.
The deal pricing is indicative of continued investor interest in prime hotels real estate in the U.K. capital.
“RIU's acquisition demonstrates how premier operators recognize the value proposition of London’s hotel market, particularly for assets with The Westminster’s caliber and prime positioning,” said William Duffey, senior managing director and head of hotels and hospitality, capital markets, Europe, Middle East and Africa, at JLL, which helped broker the deal.
The Hotel RIU Plaza London The Westminster is very close to the Houses of Parliament. It was “originally built in 2003 … [and] underwent a complete renovation in 2021, at which point it joined the Curio Collection by Hilton,” according to RIU.
The latest acquisition is RIU’s second hotel in London. The Spanish firm has almost 100 hotels spanning 21 countries.