Z Hotels’ Leicester Square Property Hits the Market for £42m

• The freehold interest in Z Hotels’ Leicester Square property is on sale for £42 million.
• The hotel features 95 boutique bedrooms, a basement restaurant, and an energy-efficient design. It is expected to be fully operational by June 2025.

A 95-bedroom boutique hotel in London’s Leicester Square has been put on the market for £42 million. Z Hotels owns the property, which is being sold through property consultants Avison Young UK and JLL.

The sale is structured as a sale-and-leaseback deal. Z Hotels is inviting offers for the freehold interest and is offering a guaranteed 35-year leaseback. The hotel lease is built around a 5-yearly reviewed rent indexed to the Consumer Price Index (CPI). A separate ground-floor restaurant lease is in place with Steak & Co.

Found at Garrick House, 3-5 Charing Cross Road, the property has been converted from an office building back to its original use as a hotel. The design of the hotel is focused on maximizing energy efficiency. It is expected to be fully operational by June 2025.

The hotel’s prime location off Leicester Square places it in London’s most frequented tourist landmarks, nightlife spots, and cultural attractions of the West End. The property’s location ensures consistently high occupancy levels. Transport links are plentiful, with Transport for London (TfL) and National Rail stations within a 5-minute walk and nearby Elizabeth Line routes at Tottenham Court Road providing access to Heathrow Airport in less than 50 minutes.

The hotel has been designed with a low environmental impact in mind. The introduction of low-carbon technologies enhances its environmental, Social, and Governance (ESG) credentials. These include photovoltaics, heat recovery units, and non-refrigerant water-cooled air conditioning.

For inquiries, please contact Pippa Harrison, Principal Head of Hotel Capital Markets, Avison Young UK: Pippa.Harrison@avisonyoung.com