City Property supports major hotel expansion

City Property supports major hotel expansion with new ground lease agreement.

City Property Glasgow (Investments) LLP (CPGI) has agreed a new ground lease option paving the way for Doubletree by Hilton’s future expansion in the heart of Glasgow.

The lease regear extends the asset’s unexpired term to 150 years, providing the hotel tenant with a significantly longer tenure at its prominent location on the junction of Cambridge Street and Renfrew Street. With planning permission already in place, the hotel is positioned to add 90 additional rooms, increasing its capacity to 394 keys and strengthening its position as a leading city centre offering.

Once complete, the additional rooms are expected to not only generate additional footfall and visitor income for the city centre but also support local employment and enhance Glasgow’s hospitality offering.

The DoubleTree by Hilton Glasgow Central is part of a portfolio owned by Henderson Park, the international private equity real estate firm, and managed by Klarent Hospitality.

Angela White, Asset Manager at City Property commented:

“CPGI is thrilled to announce this new long-term ground lease agreement that represents a promising outcome for Glasgow’s city centre. Not only does it give our tenant the confidence and stability to grow their offering but also supports the city’s wider economic development. We’re grateful to all parties involved in bringing this deal to fruition and wish Doubletree by Hilton every success with their future expansion.”

Legal representation during the negotiations was provided by Shoosmiths on behalf of CPGI and Burges Salmon on behalf of the tenant.