The new 200+ key apart-hotel is due to open in 2021 with Staycity’s new premium brand, Wilde Aparthotels, occupying 60% of the site, while Premier Inn will be taking the remaining 40%. M&G Investments has acquired the long leasehold interest of the development and will also finance the construction of the hotels. Premier Inn and Staycity have both agreed to 30-year leases with five yearly inflation-linked rent reviews. The scheme has also provided for a 27,000 sq. ft. education facility, landscaping and open space.
Kevin Vickers, Investment Director at M&G Investments, said: “London is one of Europe’s best performing hotel markets and is expected to account for more than a third of the pipeline of new aparthotels in the UK and Ireland market by 2021. The increase of high-profile operators entering the market and the availability of operating data is enabling investors to become more comfortable with investing into the sector.”
Paddington is an area of high demand for both corporate and leisure travellers as there are few licensed extended stay properties in the area, making it a perfect investment opportunity.
Tom Walsh, CEO and Co-founder of Staycity, said: “We are delighted to be part of this exciting development opportunity. Paddington Station is London’s gateway to the West and is just 15 minutes from Heathrow Airport. As well as being a burgeoning business area, leisure visitors can enjoy two royal parks within walking distance, the picturesque Little Venice and great links to London’s Notting Hill and the West End.”
After several successful openings, Staycity’s ambitious goal to reach 15,000 units by 2022 seems to be well within reach. We’re so pleased to see this exciting brand expand to yet another prime location and have no doubt that this will have nothing but a positive impact on the area’s economy, and apart-hotel sector.