Qatar group buys W London Leicester Square

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  1. uggboy
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    uggboy Gold Member

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    Qatar group buys W London Leicester Square:)

    Qatar group Al Faisal Holding Company has bought the W London Leicester Square for close to £200 million.
    Contracts were exchanged with Northern Irish developer McAleer & Rusheto and Al Faisal group subsidiary, Al Rayan Tourism & Investment Company (ARTIC).

    ARTIC is engaged in real estate development, acquisition and leasing with a primary focus on the hospitality sector and hospitality-related services in Qatar and overseas.

    The acquisition of the W in London brings its current hotel portfolio to 11 properties located across Qatar, Egypt and London, comprising seven fully operational hotels and four under development.

    MORE!>http://www.businesstraveller.com/middle-east/news/qatar-group-buys-w-london-leicester-square
     
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  2. TRAVELSIG
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    200 million GBP. For a hotel with 192 rooms. On Leicester Square... I sure hope it included the residences or something else as well as just the hotel.
     
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  3. MSPeconomist
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    Are there unsold residences in the building or valuable commercial space?
     
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  4. chanp
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    Thats alot of money. Hopefully they do a bit better with PLT treatment.
     
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  5. TRAVELSIG
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    I thought there were residences in the same building- I certainly hope so as the payback of 200 m GBP with just a hotel would be very very tough.
     
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  6. TRAVELSIG
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    Something tells me no- having to pay the debt service on 200 m GBP will mean that every single pound out of that building for a long time.
     
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  7. MSPeconomist
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    They might be counting on the land (is this a 99 year lease?) appreciating in value more than making so much money from the hotel rooms. Over a million pounds per room unit seems high and, especially as someone pointed out above, not for absolutely the best location or an irreplaceable historic building.
     
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  8. Scott Schmidt

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    Debt service alone on that has got to be about the average room rate...
     
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  9. TRAVELSIG
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    200 milliion GBP would have a debt service of aprox 8 million GBP per year.
     
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  10. Scott Schmidt

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    If true, that is 115 GPB of debt service per room, per night (assuming 100% occupancy)... I know their rates are 2-4x higher but that is alot to be spending on interest for a hotel room!
     
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  11. TRAVELSIG
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    That is why it would be interesting to know what other property or rights etc were included (apartments? storefronts? parking?)- the project seems very difficult to make work otherwise.
     
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  12. kaka
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    kaka Gold Member

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    i'm sorry but the land - it's leicester square afterall.
     
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