News

Tower views to improve as Thistle upgrades hotel

News

Samantha McClary

27 November 2004

Atrium is part of a revamp of one of the UK’s “architecturally awful” sites

Thistle Hotels is working up plans to give a facelift to one of the country’s most loathed buildings, its Thistle Tower hotel on St Katharine’s Way, E1.

Chief operating officer Bev King said the company had only done “fag packet designs” for the transformation but was looking at adding an atrium to the building as well as carrying out a general upgrading of the exterior and interior.

Just last month the 1970s-built hotel, which lies between the Tower of London and City Hall, was fourth on a list of 10 buildings deemed “architecturally awful” by the Royal Institute of British Architects.

Thistle could create space to rival the 28m high glass atrium that was added to Whitbread’s Marriott Kensington hotel on Cromwell Road, SW5, in August last year.

The hotel will then be rebranded under Thistle’s new luxury Guoman flag, which it launched with the opening of the Cumberland hotel at Marble Arch, W1, last month.

King said he expected to get a good response from planners at Tower Hamlets.

Thistle has been trying to sell seven of its hotels but it revised its plans this week after a lack of interest in the proposed deal (see below).

Sale and management deal fails to flower

Thistle put six London hotels and the Thistle Edinburgh on the market for around £200m in July, intending to take back long management contracts on the properties.

But sources said this week that Thistle was considering either sale-and-leasebacks or vacant possession sales because of a lack of interest. Potential purchasers shied away because returns would be too low and no ongoing capital expenditure had been budgeted.

Bev King, chief operating officer at Thistle, admitted the group was unlikely to close management deals on the hotels. He said Thistle was negotiating with two parties and was most likely to conduct a sale-and-leaseback. The seven hotels are being sold by investment bank UBS.

Andy Ruhan, who bought 37 Thistle hotels from Orb Estates in May last year for £700m, is also selling his Thistle Lancaster Gate hotel, which overlooks Hyde Park. The 390-bedroom hotel, being marketed through CBRE and Hamptons at £55m, is likely to be sold to a residential developer.

Atrium is part of a revamp of one of the UK’s “architecturally awful” sites Thistle Hotels is working up plans to give a facelift to one of the country’s most loathed buildings, its Thistle Tower hotel on St Katharine’s Way, E1. Chief operating officer Bev King said the company had only done “fag packet designs” for the transformation but was looking at adding an atrium to the building as well as carrying out a general upgrading of the exterior and interior. Just last month the 1970s-built hotel, which lies between the Tower of London and City Hall, was fourth on a list of 10 buildings deemed “architecturally awful” by the Royal Institute of British Architects. Thistle could create space to rival the 28m high glass atrium that was added to Whitbread’s Marriott Kensington hotel on Cromwell Road, SW5, in August last year. The hotel will then be rebranded under Thistle’s new luxury Guoman flag, which it launched with the opening of the Cumberland hotel at Marble Arch, W1, last month. King said he expected to get a good response from planners at Tower Hamlets. Thistle has been trying to sell seven of its hotels but it revised its plans this week after a lack of interest in the proposed deal (see below). Sale and management deal fails to flower Thistle put six London hotels and the Thistle Edinburgh on the market for around £200m in July, intending to take back long management contracts on the properties. But sources said this week that Thistle was considering either sale-and-leasebacks or vacant possession sales because of a lack of interest. Potential purchasers shied away because returns would be too low and no ongoing capital expenditure had been budgeted. Bev King, chief operating officer at Thistle, admitted the group was unlikely to close management deals on the hotels. He said Thistle was negotiating with two parties and was most likely to conduct a sale-and-leaseback. The seven hotels are being sold by investment bank UBS. Andy Ruhan, who bought 37 Thistle hotels from Orb Estates in May last year for £700m, is also selling his Thistle Lancaster Gate hotel, which overlooks Hyde Park. The 390-bedroom hotel, being marketed through CBRE and Hamptons at £55m, is likely to be sold to a residential developer.