Norlake Sells Hoxton Southwark for $200M as London Market Recovers

Norlake Hospitality, a lifestyle hotel and restaurant investment group, has sold the Hoxton Southwark hotel in central London for £150 million (around $200 million) to Gibraltar-based real estate investment fund Yellow Tree.

The sale follows Norlake’s earlier disposition in 2023 of two other Hoxton hotels in Shoreditch and Holborn to Archer Hotel Capital for approximately £215 million (around $290 million).

The Hoxton Southwark hotel, with 192 rooms, is located on the south side of the River Thames along Blackfriars Road, close to popular attractions such as the Tate Modern, IMAX Theatre, and the London Eye.

Global hospitality company Ennismore will continue to manage the hotel.

London’s hotel market has experienced a slower recovery over the past eight months compared to other UK regions, largely due to reduced international tourism driven by a weaker US dollar and higher travel costs for American visitors.

Despite these challenges, the return of large single-asset sales such as Hoxton Southwark points to a positive trend, reflecting renewed investor confidence in London’s hospitality sector.

A couple of weeks ago, LondonMetric Property announced the acquisition of five Premier Inn hotels from Whitbread PLC for £44.4 million (around $60 million).

Photo by Benjamin Davies on Unsplash