Whitbread PLC has announced the acquisition of a major freehold property on the Strand in central London, located just off Trafalgar Square. Funded by the Group’s existing cash resources, the purchase and development will include one of the Group’s signature Bar+Block steakhouse restaurants. Subject to planning, 5 Strand will be the latest hub by Premier Inn hotel in the estate and is slated to open in 2027.
With a total investment of over £200 million, including construction and related costs, this development is a testament to Whitbread’s commitment to expanding its presence in the popular London market, where a significant proportion of Premier Inn’s pipeline properties are located.
The purchase also highlights Whitbread’s confidence in the Hub by Premier Inn brand, which is designed for locations in major cities where property prices are relatively high but can still generate attractive long-term returns thanks to its smaller room format whilst providing affordable rooms for guests. Launched in 2014, the brand comprises a total of 2,431 rooms, which performed strongly in FY 2022.
“I’m delighted that we’ve acquired this iconic location, which is set to become our latest hub by Premier Inn hotel. It is in a prime position and is perfect for the hub brand, which is continuing to perform well,” said Alison Brittain, CEO of Whitbread. “The purchase reinforces our confidence in the long-term potential of the London market, the hub by Premier Inn brand and the growth prospects of our UK business.”