Coffer Corporate Leisure acquires Marriott Marble Arch for London & Regional

May 31, 2010

Coffer Corporate Leisure is delighted to announce the acquisition of the Marriott Hotel Marble Arch investment on behalf of London & Regional Properties.

The acquisition, for a reported price around £50m, was made from a trust managed by the Noé family.

The Marriott Marble Arch comprises a 240-bedroom hotel over the first to twelfth floors with a bar and restaurant situated on ground floor with further conference facilities, a leisure complex and underground car park.

The property is secured on an 52 year FRI lease from March 1973 to a private company which has granted a long term management contract to Marriott Hotels and Resorts who operate the hotel. The lease is significantly under-rented providing a highly reversionary investment.

London & Regional is prepared to take a long-term view. It is not yield-driven or into short-term gains. The Marriott Marble Arch deal is very reversionary.

Lawrence Telford, Director of Coffer Corporate Leisure commented: “We were delighted to act on behalf of L&R Properties in this off market acquisition which, given its reversionary nature and our client’s extensive investment and hotel experience, provides them with a fantastic opportunity to create further value in the short to medium term.”

L&R is one of the largest private property companies in Europe with substantial investments, developments and business interests in over 10 countries, including the UK, Scandinavia, Germany, Russia, South Africa and Panama. Hotels are a core part of L&R’s portfolio and its hotel assets include the Hilton Park Lane, Hilton Trafalgar, Hilton Frankfurt, Chewton Glen and Fairmont in Monte Carlo. The portfolio includes hotels on leases, turnover rents, management contracts and self-run hotels.

Outside hotels, in the UK major investments include David Lloyd Leisure, General Healthcare Group and 55 Baker Street. The business also has a strong presence in Russia and Ukraine where it owns Globus, the largest shopping centre in Eastern Europe. In South Africa, London & Regional owns the largest piece of real estate in the form of the Victoria and Albert Waterfront in Cape Town.