Privately owned real estate investment company Aprirose has sold The Leonardo Hotel at London’s Heathrow Airport to the Fattal Hotel Group for an undisclosed sum.
The hotel has been let to Fattal Group’s Leonardo Hotels on a lease with 15 years remaining, generating £1.7m in annual rent, which is expected to rise to more than £2m at the next review in March 2025.
The move reflects a wider trend among hotel operators acquiring the properties they occupy to strengthen control over their brand, streamline operations, and support long-term strategies, while also cutting leasing expenses and mitigating risk.
Aprirose acquired the hotel in 2015, with the tenant carrying out a major refurbishment in 2019.
The asset was sold by Aprirose to free up capital for reinvestment into its two main investment focuses: core income and asset management-driven deals.
Ari Boyd, chief financial officer at Aprirose, said: “Selling the asset to the owners of our long-term tenant represented an ideal transaction for Aprirose, creating liquidity for our investors. It comes as we have been looking to redeploy capital into other sectors where we believe we can achieve enhanced returns.
“Investors are looking for both core income and asset management opportunities and we are working on a number of transactions currently via these two strategies.”
Knight Frank advised Aprirose on this transaction.
Image: Aprirose
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