UK: BNP Paribas Real Estate has sold South Kensington’s The Exhibitionist hotel for £10.625 million to an undisclosed buyer.
The 37-bed property on Queensbury Place was sold for 15 per cent more than its quoting price, reflecting a net yield of just over two per cent. It marks the first time the freehold property has been sold for 75 years.
Dating back to 1876 and formerly two Victorian townhouses, The Exhibitionist was established in late 1980s and underwent refurbishment in 2015.
It has been let on a triple net lease for a further 15 years (until March 2037) with four-yearly upward only rent reviews.
Richard Talbot-Williams, senior director of hotels at BNP Paribas Real Estate, said: “Investor sentiment towards rarely traded prime London hotel assets has remained extremely robust and durable through the pandemic period, a time during which there has continued to be a very limited supply of ‘proceedable’ hotel investment opportunities.
“The competitive nature of the bidding for this prime town house hotel from both domestic and foreign buyers demonstrates a very high level of future confidence in the success of London hotels, in which we are great believers.”
John Woodhouse of Bond Woodhouse acted on behalf of the buyer.