The West End’s new hotels boom shows no sign of slowing after a 'compact luxury' accommodation firm signed a deal for a site on Leicester Square’s doorstep.
Z Hotels, known for its affordable rooms in a number of UK city locations, said it has secured a loan which will be used towards the purchase and refurbishment of a vacant office block on Charing Cross Road.
The firm, which was founded in London in 2011, has lined up the £23 million co-loan from OakNorth Bank and property lender ASK Partners.
Subject to planning it is expected to be converted into Z Hotels’ 15th site and will have a minimum of 81 rooms and a maximum of 95.
Bev King, chief executive at Z Hotels, said the new branch would provide well-designed bedrooms at affordable prices.
Deepesh Thakrar, senior director, debt finance at OakNorth, said: “Given London’s hotel market is set to show strong resilience against the current downturn, we fully expect this new hotel to be another success story for Z Hotels.”
Daniel Austin, chief executive of ASK said: “This is an exceptionally well-located site which fits Z Hotels’ target market perfectly, capitalising on the growth we’re seeing in single business travellers during the week and short stay tourists at weekends."
Austin added: "Given Z Hotels’ track record as a successful owner operator of five other hotels within close proximity of this site all with high year-round occupancy levels, ASK was fully supportive of the project and happy to provide a 36-month loan to acquire this building, which I anticipate will be another well-designed and popular hotel for the group.”
Tourism continues to bounce back post-pandemic. According to property agent JLL there are 21 hotels being built or set for construction in the West End.
Yesterday the Evening Standard revealed that luxury hotelier Firmdale, operator of Ham Yard Hotel and seven other London locations, enjoyed record sales and profits last year.
