Shiva Hotels has completed the purchase of the Kingsway Hall Hotel, W1, from Cola Holdings for close to £100m, reflecting a circa 5.5% yield.
The deal comes less than two weeks after Cola – run by managing director Azad Cola, who took over from his father Bakir Cola in 2005 – secured planning permission to extend the hotel and create an extra 20 rooms.
Cola said: “Ever since we opened Kingsway Hall in 1999 the Hotel has been a tremendous success. We had many approaches from both UK and international buyers. It was difficult to choose which party to engage with.”
For Shiva it is the latest in a string of London deals which have swollen its portfolio to more than 2,000 bedrooms under operation or development in London.
Rishi Sachdev, managing director of Shiva Hotels, said: “We realised we had stiff competition given the quality of this asset. We plan to carry out a major refurbishment of the property and increase bedroom numbers. We are very excited by the potential to rebrand and reposition this hotel in the market.
“Cola Holdings was very straightforward to deal with and this enabled us to meet a very tight timeframe to complete the purchase.”
Savills advised Cola Holdings Limited and Gerard Nolan and Partners advised Shiva Hotels.
