DOUBLETREE BY HILTON RIVERSIDE DOCKLANDS

  • Substantial property (23,640m2) opposite Canary Wharf, including 378 bedrooms and 13 meeting/conference rooms.
  • Hotel operated by Hilton but on a stub end lease, resulting in underinvestment.
  • Corporate customer base was still recovering from the GFC.
  • Poor invested product, tired and dated, which would not appeal to higher-rated Investment Banking customers.
  • Market timing/cycle, allowing higher yield to be secured.



INVESTMENT STRATEGY ACHIEVED

  • Transformative and comprehensive refurbishment of entire hotel completed in August 2015 (whilst still operating).
  • River frontage (a clear USP) was optimised by creating a year-round outside bar and dining area.
  • Rebranded as a DoubleTree by Hilton.
  • Management Agreement with Hilton Worldwide for an initial contract term of 15 years (with an owner’s option to convert to a franchise agreement).
  • Lowest rated leisure volumes were replaced with equivalent volume of corporate business, pushing average rate up 30% (but still allowing for a discount versus more centrally located hotels).
  • Replaced senior management team to reflect new product positioning.
  • Procurement teams focussed on delivering reduced costs through our active asset management and cost reduction programmes.
  • Strategic sale of non-core property as residential (change of use) within 12 months to repatriate capital.
  • Refinanced within two years, following repositioning of the asset.
  • Hold period 29 months.