Evans Randall Investors has sold the four-star Croydon Park Hotel in Croydon to Croydon Council for £29.8m.
The freehold 211-room hotel (pictured), which occupies a 1.54 acre site in the heart of Croydon’s commercial district, was put up for sale in June.
Evans Randall acquired the hotel as a distressed asset nearly five years ago from Ireland’s National Asset Management Agency at a yield of around 9%.
Kent Gardner, chief executive of Evans Randall Investors, said: “Throughout our ownership we have secured excellent income and capital growth and we now see this as the right time in the cycle to exit.
“In Croydon Council, we know we have found the ideal investor to take this property forward and ensure it continues to make a valuable and strategic contribution to Croydon town centre.”
Croydon is undergoing a huge regeneration programme including the revamp of Fairfield Halls and College Green, and Stanhope and Schroders’ Ruskin Square scheme, which has HMRC as a tenant.
A £1.4bn transformation of Croydon’s two shopping centres by Unibail-Rodamco/Westfield and Hammerson is also planned.
Evans Randall Investors was represented by CBRE and advised by CS Hotels and the international law firm Paul Hastings.
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