New hotel deal confirmed - commercial mortgages

14 April 2008

In news which may provide a further indication that the hotel sector could be a good place to have commercial mortgages, the Crown Estate has sold its 125-year leasehold on the Cafe Royal''s block on Regent Street in London to Israeli hotel and property investment company Alrov.

The buyers will now turn the hotel into a luxury 160-room venue, property Week reports.

Managing director Georgi Akirov said: "This is an exceptionally exciting opportunity to develop a world-leading hotel in one of the world''s leading tourism destinations."

Alrov had previously been involved in unsuccessful negotiations over the possible purchase and conversion of Somerset House on the Strand.

In another instance of a hotel company expanding its portfolio, Zeus Private Equity has added four new hotels to its Hallmark Hotel Group portfolio, reports Crains Manchester Business.

Two of the properties are based in Derby, while the others are in Carlisle and Bournemouth.