Premier Inn checks in for Invesco and YardNine Paddington hotel

Invesco Real Estate and YardNine has agreed a leasing deal with Whitbread for a new 366-bedroom hotel and restaurant at 40 Eastbourne Terrace, W2, next to Paddington Station. The hotel will comprise a 275-bedroom Premier Inn, a 91-bedroom hub by Premier Inn and Whitbread’s premium Bar + Block Steakhouse restaurant. This will mark the first time all three brands will occupy the same building. Construction is set to begin in Q2 this year, for launch in late 2023. Whitbread said it is investing heavily in Paddington in response to strong demand for hotel bedrooms from business and leisure guests. As well as the 40 Eastbourne Terrace development, Whitbread has a 373-bedroom Premier Inn hotel under construction in Paddington Basin and a 294-bedroom hub by Premier Inn on Marylebone Road. Invesco Real Estate initially bought 40 and 50 Eastbourne Terrace on behalf of one of its long-standing US separate account clients in July 2018. The redevelopment of both sites will provide 75,000 sq ft of grade-A offices, with 10,000 sq ft of retail space, seven mews houses and the 366-bedroom hotel. The scheme is designed by leading architects Sheppard Robson. Mark Younger, director of YardNine, said: “Despite the disruption to daily life over the last year, we are beginning to see the green shoots of normality returning. “In a post-Covid environment where increased flexible working might lead more individuals to live further out from city centres, well-located hospitality assets play a key role in ensuring we can still collaborate and benefit from face-to-face meetings.” Richard Chambers, senior director of investment management in Europe at Invesco Real Estate, said: “The asset’s strong real estate fundamentals mean we are confident in the ability to attract the best tenants and operators, brands and covenants, as development progresses. “As a long-time investor in hotels, Invesco Real Estate believes strongly in this sector especially given its attractive long income attributes coupled with the combination of a strong brand and operator covenant.” Jonathan Langdon, acquisitions manager for central London at Whitbread, said: “Our business strategy is to invest in locations where we expect to see strong, long-term demand for our Premier Inn and hub by Premier Inn bedrooms. Paddington is one such market where we see this opportunity for strategic growth.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette Photo: YardNine