Frogmore is selling South Place Hotel, EC2, for £80m.
The asking price reflects an investment of £1m per bedroom for the 80-bedroom hotel, which is part of its Real Estate Partners I fund.
The hotel is leased to restaurateur D&D London, which has a remaining 32 years on the lease.
Frogmore bought the asset intending to develop it into an office building, but had to rethink its strategy during the financial crisis and made it into a hotel instead.
Jo Allen, chief operating officer at Frogmore Real Estate Partners, said: “We took our time to sculpt and refine the hotel during the economic downturn, which resulted in the exclusive hotel offering we have today. It has been fantastic to see it come to fruition and now return the equity to our investors, for our next move.”
Gerard Nolan has been instructed to find a buyer for the hotel.
