Art-otel Hoxton, London

The Challenge

In early 2020, we were instructed by the bank to provide a valuation for loan security purposes of Park Plaza Hotels Europe’s (PPHE’s) mixed-use development proposal in Hoxton, London. The proposal comprises a circular tower building with 17 floors dedicated to hotel use providing 343 keys with a large conference suite, lounge and gym located on the upper floors and affording unrivalled 360-degree views over London. The lower floors, floors two to six, will comprise office space while the basement includes the hotel’s spa, an art gallery and auditorium. The ground floor will comprise destination restaurants with seating spilling out onto the street.

Art’otel Hoxton will be of an upper upscale classification of an exceptionally high specification and finished to a modern design. The hotel lies at the heart of London’s vibrant Hoxton district has been designed to be in keeping with this local fashionable area with a signature artist’s work featured throughout the hotel.

As a complex multi-faceted scheme this valuation required consideration not only of all full-service hotel components, but it also required expertise in other sectors, such as offices.

The Solution

The hotels team has excellent experience in valuing full-service hotels including all of the competitor set, and we were able to draw upon our knowledge in the sector to value each of the hotel components. We were also able to draw upon expertise in the wider partnership which was crucial in providing a valuation of mixed-use scheme. Gerald Eve has specialists in a diverse range of sectors and we therefore co-ordinated the various specialists within the partnership to ensure that the correct expertise was applied to each part of the project.

Through using our in-house team of experienced and specialist valuers, we were able to provide the client with well-informed advice.

The Result

A comprehensive and accurate valuation was provided to the client. We valued the scheme ‘as is’, i.e. as a development site using the residual method of valuation as well as at Day One Practical Completion and at Trading Stabilisation.