A giant US property investor has acquired a hotel at the heart of the King's Cross regeneration, next to the busy mainline London station. Pramerica has bought the 157-year-old Great Northern Hotel, due to reopen in 2013 after redevelopment. Pramerica has bought the 999 year lease for £12m.
Pramerica bought the hotel for its ground lease fund. It was advised by Gerard Nolan & Partners. The 125-year lease to the hotel is owned by RAM - the developer of the hotel.
The London hotel market has proved popular for investors as tourists continue to pay top rates. Wealthy tourists from Latin America and the Middle East have kept a £14,000-a-night suite at the Lanesborough Hotel in central London full since the day it opened in May.
US hotel group Starwood runs the St Regis Lanesborough Hotel and built the 4,000sqft suite this summer. It is extending the group's hotels in London.