Invesco Real Estate and YardNine have signed an agreement for lease with Whitbread for a new 366-bedroom hotel and restaurant as part of a major mixed-use development at 40 Eastbourne Terrace 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 – the first time all three brands will occupy the same building. Construction is due to commence in Q2 2021 and the hotel is anticipated to open in late 2023.
Whitbread is investing heavily in Paddington in response to strong demand for its 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 hotel coming to Marylebone Road. Invesco Real Estate acquired 40 and 50 Eastbourne Terrace on behalf of one of its long-standing US separate account clients in July 2018, and the redevelopment of the two sites will provide 75,000m² of Grade A office accommodation, with 10,000m² of retail space and 7 mews houses; and the 366-bed hotel.
Located directly opposite London Paddington station, adjacent to the entrance to the Elizabeth Line, tenants, residents and guests will benefit from close proximity to national and local travel links, the leisure, retail and dining options of Paddington Basin and the West End, and the green space of Hyde Park. The scheme has been 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. Located adjacent to Paddington station, who better to partner with than Whitbread to deliver high-quality accommodation to this increasingly popular area of London.”
Richard Chambers, Senior Director – Investment Management, Europe at Invesco Real Estate, said: “Eastbourne Terrace is a truly unique development in the heart of Paddington. 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. This is demonstrated today with Whitbread, who are a well-known, leading operator. 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. We are delighted to be working alongside YardNine and Whitbread as we continue to realise the full potential of Eastbourne Terrace.”
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. The 40 Eastbourne Terrace development brings our three leading brands together in one building and grows our presence in the Paddington catchment to over 1,000 bedrooms.It is a fantastic addition to our network of hotels in central London and demonstrates our confidence in the future success of the capital.”