Singaporean Consortium Acquires Crowne Plaza Hotel in London for £84 Million

A Singaporean consortium led by developer Heeton Holdings Ltd has bought over hotel investment holding company, LC London, which owns the Crowne Plaza London Kensington hotel. Joined with KSH Holdings Ltd and privately held construction firm Ho Lee Group Pte Ltd, Heeton acquired the hotel for £84.3 million.

In a disclosure, Heeton confirmed it teamed with KSH Holdings and Ho Lee Group to acquire the four-star hotel via a share sale and purchase agreement with LC London. With the completed acquisition, Heeton now holds 60 per cent stake in the Crowne Plaza London Kensington hotel, while KSH Holdings and Ho Lee Group each hold a 20 per cent stake.

Established in 1976, Heeton’s has further diversified its real estate portfolio into hospitality assets over the past eight years. The acquisition marks Heeton’s largest one to date, bringing the group’s global portfolio to a total of 12 operating hotels; eight in the UK, as well as two in Japan and two in Thailand.

In 2016, Heeton was part of another consortium of Singapore-listed companies that acquired the 12-storey Holiday Inn Express in Manchester. Seven of the UK hotels, including the Holiday Inn Express, are self-managed, while one is externally managed (Hotel Indigo Glasgow).

Located in the heart of Kensington & Chelsea, the 163-bedroom hotel sits on nearly one acre of land. In a joint statement from the three consortium partners, the hotel is said to offer great opportunities for generating revenue growth following its recent refurbishment in 2015. The hotel will remain as the Crowne Plaza London Kensington, with InterContinental Hotels Group continuing its management agreement.

Managing Director of JLL Hotels & Hospitality, Will Duffey, concluded:

“London is one of the most sought-after hotel investment markets in the world. The Crowne Plaza London Kensington represented a rare opportunity to acquire a freehold asset with a stable in-place cashflow and further value-add potential.”

Heeton’s CEO, Eric Teng, stated that the acquisition “reaffirms Heeton’s intention to be a strategic player in the international hospitality sector”, while Executive Chairman and Managing Director of KSH, Choo Chee Onn, believes:

“This acquisition is an excellent addition to our portfolio to further strengthen our recurring income stream. With its strategic location in the thriving business and tourism hub of London, offering convenience and excellent connectivity, this quality hospitality asset will resonate well with travellers.”

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