The hotel is located in an established yet evolving part of London, adjacent to a major park and transport hub. The area is seeing sustained growth in upmarket residential development, driven by increasingly affluent local demand. At the same time, the boundaries of London’s luxury hotel market are shifting, with new developments emerging in Bayswater and deeper into the West End around Trafalgar Square and Whitehall. This context elevated the strategic potential of the asset within the luxury segment.

We worked with the client and key stakeholders to define and anchor the proposed market positioning, including the number of keys, F&B outlets, and leisure facilities. We then selected two competitive sets: one focused on the traditional Park Lane luxury enclave, and another capturing broader luxury trends across London. These were used to triangulate likely performance and inform top-line revenue projections.

We benchmarked and critiqued the proposed design against target market expectations, and used internal and external data to model operating and fixed costs. We also analysed comparable transactions and capital markets sentiment to estimate future GDV.

Finally, we reviewed and refined the repositioning cost assumptions and developed a pricing framework. This included multiple scenarios incorporating developer profit, risk, and contingency, to provide a grounded opinion of pricing and support the vendor in evaluating the offer.

Our work provided the vendor with a commercially anchored view of pricing and strategic clarity on the asset’s repositioning potential. It also highlighted the growing relevance of luxury hospitality in emerging Central London submarkets, supporting future investor conversations and capital deployment decisions.

Project Location

London, United Kingdom