Corinthia Group subsidiary in London hotel deal

International Hotel Investments plc, a subsidiary of the Corinthia Group, is part of a consortium that yesterday concluded a deal to buy property in central London that will be turned into a 283-bedroom five-star hotel.

The Crown Estate of the United Kingdom announced yesterday it had agreed terms for the sale of the Metropole Building and 10 Whitehall Place to a consortium that includes IHI and its principal shareholders, Istithmar Hotels FZE and LFICO.

The 400,000-square foot property will include a suite of luxury residential apartments apart from the hotel, IHI said.

IHI said the Crown Estate received a number of "very strong bids" from all over the world after inviting international offers last year. IHI, Istithmar Hotels and LFICO were selected "as having the vision to meet the challenge of restoring this once grand hotel to its original use, in a manner most sympathetic to this building's architectural features, townscape setting and history of the site," IHI said yesterday soon after making a company announcement at the Malta Stock Exchange.

The announcement, signed by company secretary Alfred Fabri, said there were 26 bids from "the world's leading developers" to buy the Metropole Building. On completion of the work on the property, the management of the five-star hotel operation will be entrusted to Corinthia Hotels International Ltd to run it under the Corinthia brand, the announcement said.

IHI admitted that it has, for some time, been keen to expand its business operations into London. It considers the Metropole as ideal for its needs and "provides an opportunity to create a world renowned, 283-bed hotel in the West End overlooking the Thames".

Charles Gardner, head of Office Portfolio at The Crown Estate, said: "IHI's bid stood out from a strong field of competitors with a proposal to refurbish the building rather than rebuild behind the existing façade. We were impressed by IHI's track record and are confident that they will restore the once grand Metropole Hotel to its former glory".

IHI chairman Alfred Pisani, Chairman of IHI, said IHI and its partners are eager to becoming part of London's vibrant hotel community and to working closely with The Crown Estate. According to the we4bsite of the UK Ministry of Defence, the Metropole Building was the second hotel in Northumberland Avenue to be built by the Gordons Hotels Company. Work started in 1883 and the Metropole Hotel was opened in 1885.

The hotel is reputed to have hosted the Prince of Wales, who later became King Edward VIII. It was requisitioned to accommodate government personnel during World War I. It reopened as a hotel after the war but, in 1936, it was leased by the government and remained in government use both during and after World War II. Later on it remained in the hands of the Ministry of Defence until it was vacated in 2004. It has remained closed and unoccupied since.