Six Continents (6C) is looking to cash in on its famous Mayfair InterContinental Hotel ahead of a proposed demerger of its hotels business.
The £4.4bn pubs-to-hotel group, formerly Bass, wants £150m for the 250,000 sq ft (23,250m2) building and is believed to be offering the site with vacant posession, rather than leasing back the hotel in Stratton Street, W1.
It has appointed Jones Lang LaSalle’s West End investment team to handle the sale, but neither the agent nor its client would confirm the news.
However, Estates Gazette has learned that JLL has been in discussions with a number of potential buyers for the building, which is being eyed as a hotel and residential redevelopment.
A source who was offered the property said: “They [6C] received an approach from a Middle Eastern investor in November and realised that they could get substantial cash if they brought the building to market.
“The real value is in the vacant posession because there is great demand for prime hotel development opportunities.”
Following the unsolicited approach in November, 6C scrapped its plans for a £63m refurbishment of the hotel, which would have increased the capacity from 290 rooms to 375.
Later this month 6C will send a prospectus to shareholders, detailing plans to demerge the group. The plans to sell the Mayfair, considered the most valuable in its hotel estate, are not expected to be detailed in the prospectus.
The eventual buyer would take control of the empty hotel but the adjoining Palm Beach Casino would continue to operate.
But it has also emerged this week that the casino’s operator, London Clubs International, which leases the site from 6C, has instructed Deutsche Bank to find a buyer.
