South Kensington boutique hotel sells for £10.6m for the first time in 75 years

Acting on behalf of a private trust client, BNP Paribas Real Estate (BNPPRE) has successfully sold The Exhibitionist hotel in South Kensington for £10.625m to an undisclosed buyer.

Following a competitive bidding process, the 37-bed freehold boutique hotel on Queensberry Place was sold by the hotels team for 15 per cent over its quoting price reflecting a net yield of just over 2 per cent. It is the first time the freehold of the property has been sold for over 75 years.

The hotel is let on a triple net lease for a further 15 years, expiring March 2037 with four-yearly upward only rent reviews. It generates a current annual rent of £237.5k.

Richard Talbot-Williams, senior director, Hotels at BNP Paribas Real Estate commented: “Investor sentiment towards rarely traded prime London hotel assets has remained extremely robust and durable through the pandemic period, a time during which there has continued to be a very limited supply of ‘proceedable’ hotel investment opportunities.

“The competitive nature of the bidding for this prime town house hotel from both domestic and foreign buyers demonstrates a very high level of future confidence in the success of London hotels, in which we are great believers.”

The property dates back to 1876 and formerly comprised two interconnecting Victorian town houses arranged over lower ground, raised ground and five upper floors. The property became a hotel in the late 1980’s and underwent extensive refurbishment in 2015.

The Exhibitionist is located near the Natural History Museum (0.2 miles), and the Victoria and Albert Museum (0.3 miles). Hyde Park, the Royal Albert Hall and the retail facilities of Knightsbridge and the Kings Road are within a 10 minute walk.