Three major hotel sales totalling around £770 million have topped off a bumper end of year for London's hotels investment market.
Punta Na, the investment firm of the family who owns fashion brand Mango, has bought the 192-bed W London hotel in Leicester Square for £260 million. The hotel was sold by Qatar’s Al Rayyan Tourism Investment Company. In 2023 HSBC extended a circa £160 million loan on the property.
ARTIC, part of Al Faisal Holding, which was founded by chairman Sheikh Faisal Bin Qassim Al Thani in 1964, bought the property at 10 Wardour Street, Soho, in November 2011 for £200 million, according to CoStar data. The property has 216,197 square feet of hotel space and 38,803 square feet of retail space on the lower floors. Chocolate maker M&M occupies the retail space at £2 million a year.
Separately Westmont, BHP and PPF Real Estate have sold the 464-key The Westminster London to Riu Hotels & Resorts for £290 million. JLL advised the consortium.
Originally built in 2003, the hotel underwent a complete renovation in 2021, at which point it joined the Curio Collection by Hilton. Following Riu's acquisition of the property, it has become part of the chain’s Riu Plaza portfolio of city hotels.
The hotel will be opened as the Hotel Riu Plaza London and joins a Victoria hotel that Riu opened in July 2023. The hotel is located one minute from the River Thames and Tate Britain.
The transaction represents the highest value single asset hotel deal in London in five years. Riu is a Spanish owner-operator with over 50,000 keys under management.
William Duffey, head of EMEA hotels and hospitality at JLL, said in a statement: “This transaction is a great example of us connecting global capital with destination assets and setting the tone for 2026, where we see a continuation of the same. Riu's acquisition demonstrates how premier operators recognise the value proposition of London's hotel market, particularly for assets with The Westminster's calibre and prime positioning."
Finally, Criterion Capital has taken full ownership of the 732-room St Giles London Hotel on Tottenham Court Road via a circa £220 million acquisition.
The hotel occupies a landmark position at the intersection of Oxford Street and Tottenham Court Road, adjacent to Tottenham Court Road Underground station. Criterion, led by billionaire Asif Aziz, has bought the hotel at 12 Bedford Avenue from Malaysian group IGB, which appointed JLL on the disposal last year.
Criterion already owns the freehold ownership of the block and two years ago it bought the freehold of the adjoining YMCA building for £10 million.
Also in December, City Developments bought the 706-key Holiday Inn Kensington High Street for £280 million, Gold Care Homes purchased the 382-room Delta Hotels by Marriott Heathrow Windsor, while Cheyne Capital and Dominus bought Ibex House for office to hotel conversion. Gerent Group acquired Brickmakers Yard for redevelopment for £170 million, while Rivalminster, a Sehgal family hospitality vehicle, bought Crowne Plaza in Ealing for £139 million.
Cristina Balekjian, CoStar director of Hospitality Analytics, UK, said: "The end of 2025 finished on a high in terms of hotel transactions, particularly in London, with various deals above £250 million bolstering transaction volumes. After an initially quiet first half of the year for hotel deals in the capital, the last quarter confirms investors’ continued confidence in the London hotel sector and bodes well for the year ahead, especially as interest rates are expected to be cut further, and assets such as the Chancery Rosewood, which opened in September, are currently on the market and should generate significant interest."