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London Heathrow Hotel checks in at over £70 million

By James Russell: London Heathrow Hotel checks in at over £70 million

June 24, 2014

Savills has sold the hotel investment of Park Inn Hotel & Conference Centre, London Heathrow to AXA REIM for circa £72 million, representing a net initial yield of 5.9%. The sale was conducted on behalf of Simon Appell, Alastair Beveridge and Anne O’Keefe of Zolfo Cooper, the joint administrators of Dania Properties Heathrow Ltd.

The 895 bedroom, four star hotel and conference centre is let to Park Inn by Radisson on a lease guaranteed by Rezidor Hospitality A/S.

Michelle Webb, director of hotels at Savills, comments: “Park Inn is the closest hotel to terminals 1, 2 and 3 at London Heathrow, the busiest airport in the UK. Its location, combined with a strong covenant to Rezidor, which is rolling out a £13 million refurbishment programme on the property, made it an attractive investment and the strength of the asset is reflected in the price achieved.”

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