Hyatt is set to open a hotel next to London’s Gatwick airport under its Hyatt Place brand.
The commercial ground rent for a 185-room property located around five minutes from the airport has been acquired by RPMI Railpen, investment manager for the railways pension scheme.
The existing building was formerly a Travelodge hotel, and is let on a 150-year lease to Axcel Hospitality Group, which will “to implement a comprehensive high-quality refurbishment of the hotel, including upgrading rooms and a full renovation of the reception, restaurant and bar areas”.
A press release confirms that Heads of Terms have been signed for the property to reopen as a Hyatt Place hotel, with completion estimated for the third quarter of 2021.
Interestingly the property is listed on Axcel Group’s website, but at the time of writing was showing as a forthcoming hotel under Marriott’s Moxy brand.
Hyatt already operates a 350-room Hyatt Place hotel on the Bath Road close to Heathrow airport (pictured above), as well as 170-room property under the brand in Hayes, around 20 minutes from Heathrow.
In 2018 Hyatt Place also announced plans for its first central London property, located on Whitechapel Road in Aldgate, within a redeveloped 1980s office building formerly known as Black Lion House.
Commenting on the news, Julian Allport, of Railpen’s Long Term Income Fund, said:
“Our priority is ensuring we continue to provide secure, consistent, inflation-linked income for our members. The hotel is well located for long-term growth, managed by an experienced operator and benefits from a franchise agreement with one of the world’s leading brands.
“The completion of this transaction highlights that Railpen is very much open for business to invest in the right opportunities.”