'Investhotel' developers turn to Howard Kennedy

Howard Kennedy has advised Portugal's largest hotel and leisure group Pestana Group on the sale of new luxury 'investhotel' units in London.

The Pestana Chelsea Bridge Hotel, due to be completed in 2009, fronts the River Thames at Chelsea Bridge Wharf. It will comprise 218 rooms - 66 of which are being offered for purchase as 'investhotel' rooms.

Pestana Group owns 82 hotels worldwide, but this is the company's first UK venture.

The Howard Kennedy team that advised on the deal included property partner Eric Gummers, who has experience in the hospitality and leisure industry, and partners Graham Goldspink and Paul Amandini, who specialise in structured commercial property investments.

Gummers said: "Our client has significant coverage in Portugal, Madeira and Brazil, and wanted a London hotel property as it was receiving demand from guests. Investors were offered a 6 per cent yield guaranteed for the first couple of years to underpin investment in the first period so that they know there's going to be a return until the hotel achieves recognition and gets to a stabilised position."

Howard Kennedy first worked for Pestana following another client's recommendation on a previous deal, but was approached directly for this deal, Gummers said.