Firethorn checks in at York Malmaison
The investor has acquired the 150-bedroom hotel, which produces £2.1m rental income per year, from Lothbury Investment Management.
Within the city walls, the Rougier Street site had been held in the vendor’s main Lothbury Property Trust, which is to be closed down.
Although the sale price for the off-market deal was undisclosed, a listing on the Lothbury website described it as a £31m asset. Malmaison occupies the 29,000 sq ft building, formerly known as Yorkshire House, on a 35-year lease.
The hotel underwent an extensive redevelopment in 2021, which included the addition of a rooftop skybar and the hotelier’s ‘Work + Play’ facilities, with meeting pods, co-working areas, conference rooms and an events space that caters for up to 180 guests.
There is also a spa and gym. Firethorn said that since its overhaul, the hotel has become one of the best performing sites within the wider Malmaison and Hotel Du Vin chain.
This is the latest addition to Firethorn’s Living portfolio, following recent acquisitions of One Bessborough Gardens in Central London for a residential conversion, and a purpose-built student accommodation scheme in Edinburgh.
Marcus Weeks, director and head of living at Firethorn Trust, said: “Malmaison York is a high-quality asset that will perform well and create long-term value for us, whilst strengthening Firethorn’s presence in the living space
“It’s a fantastic addition to our investment portfolio and complements our wider development strategy to deliver high-quality spaces in great locations that enable people and places to thrive.
“We have an appetite and ability to pursue opportunistic transactions, and look forward to continuing our growth within the living sector.”
Firethorn Trust was advised by Conway Real Estate, JLL and Maples Teesdale.
