London’s W hotel sold for £200m to overseas investor

The 192-bedroom W London-Leicester Square hotel has been sold for almost £200m in what is one of the most high-profile hotel transactions of the year.

Property developer McAleer & Rushe has sold the Starwood-operated hotel development, which also houses 11 W Residencies and an M&M World store, to a Qatari-based investor just eight months after its launch in February 2011.

Eamonn Laverty, managing director of McAleer & Rushe, said: “This has very much been a flagship, showcase development for McAleer & Rushe. We built a hotel that is instilled with the highest levels of design and exclusivity that one would expect of such a glamorous brand as W and on such a prominent site, on one of London’s most famous squares.

“The funds raised will be reinvested in the business and will assist us in the pursuit of other development opportunities.”

Jones Lang LaSalle and Steerforth Partners were appointed to advise on the sale in January this year after receiving numerous direct approaches from interested buyers.

Robert Millar investment partner of Steerforth Partners, said: “The W Hotel received a lot of interest from international investors and is the latest evidence that the market for prime central London property remains very robust. The price achieved is testament to McAleer & Rushe’s foresight and acumen in acquiring, developing and letting this iconic London landmark”.

The five-star hotel also features Spice Market, the first London restaurant for Jean-Gorges Vongerichten, and Wyld, the Ignite-operated club.