Daejan Investments is suing the Strand Palace Hotel for almost £7.5m in rent arrears.
In a claim lodged at the High Court, Daejan is seeking to recover rent arrears from Strand Palace Hotels and Restaurants Ltd, tenant of the hotel at 372 Strand, WC2.
Daejan, the landlord under an underlease, is seeking to recover £7.5m in unpaid rent plus interest of more than £275,000 mounting at a rate of more than £700 a day.
It says that a headlease rent review in July 2011 increased the rent payable to its landlord, City & Country Properties, from £26,000 to £3m.
It claims that, under the terms of the underlease, the increase is passed on to Strand Palace as its tenant from 5 July 2011 – increasing the yearly rent to £5.1m pending the next rent review this year.
It issued a demand for £3m in May 2012, but says this was not paid. And while Strand Palace has continued to pay its previous rent at £529,750 per quarter, Daejan says this has resulted in arrears of £748,750 for each quarter.
Strand Palace is expected to defend the claim.
