The 114-year old central London asset has been acquired by Fattal Group.
Fattal Group has acquired the 283-bedroom The Dilly Hotel, in London from Archer Hotel Capital.
Collier's Hotel Capital Markets lead Saar Sharon advised the buyer on this transaction. Details of the deal have not been disclosed, but the group has announced plans to invest £90million on refurbishing the 26,000 sqm hotel on London’s Piccadilly, including a luxury spa.
The Dilly, which was previously known as Le Meridien until late 2020, opened in 1908 and was frequented by King George V during his reign. It features squash courts, events and meeting spaces, as well as an indoor swimming pool and treatment rooms.
Saar said: “This is a fantastic accomplishment to see The Dilly change hands to a brand that is truly invested in the UK and European hotel market. Fattal Group has been very acquisitive recently and we’re pleased to have been able to advise them on this opportunity.
“International tourism started to return to London this summer with force and looking forward, we expect London as well as regional hotels to benefit from the influx of international tourism, particularly Americans looking to capitalise on the low pound. While we expect some headwinds as a result of energy prices as well as interest rates volatility, however well located, quality hotels and serviced apartments will continue to attract significant investor interest.”
Fattal Group owns the Leonardo Hotels UK and Ireland brand which has 52 hotels in the region and 150 in Europe, and another 50 across the globe. Its central London portfolio includes Leonardo Royal hotels at London City, Tower Bridge and St Paul's, and the NYX Hotel London Holborn.
Jason Carruthers, managing director of Leonardo Hotels UK & Ireland, said: "We're very pleased to be adding another high performing hotel and yet another iconic hotel brand with a long rich history to the Leonardo portfolio.
"[The Dilly] is a great hotel, with an experienced management team and dedicated employees, and fits very well into our broader portfolio and our strategy to position Leonardo Hotels as one of Europe's most significant owner and manager of well invested, and strategically positioned hotels."