Premier Inn owner Whitbread has spent £56.5 million buying the freehold of an office building in London’s financial district.
Whitbread said that it planned to redevelop New London House, which is located next to Fenchurch Street rail station, into a hotel-led complex, subject to gaining planning consent.
Jonathan Langdon, senior acquisition manager at Whitbread, said: “The City of London’s appeal as a business and leisure destination continues to underwrite our investments in new hotel developments in the Square Mile.
“New London House presents an excellent opportunity to expand our network in the City and deliver our high-quality, great value hotel bedrooms in a location with the transport connections and proximity to business and leisure demand drivers that our customers expect.”
Whitbread has a history of converting former office buildings into Premier Inn and Hub by Premier Inn hotels. It already has two similar redevelopments under construction in nearby Farringdon and Moorgate, also in the City of London.
Mark Anderson, managing director for property and international at Whitbread, added: “We are seeing a structural shift in the London office market presenting opportunities to acquire office buildings that are no longer fit for occupier and investor purposes, and to reposition and refurbish them into successful hotels.”