7 ALTYRE RD, , CR9 5AA CROYDON PARK HOTEL CROYDON PARK HOTEL

EXECUTIVE SUMMARY

Exceptional opportunity to purchase a prime freehold hotel in the centre of Croydon’s Commercial District.

Substantial 137,000 sq. ft. full-service hotel with 211 guestrooms, car parking, food and beverage facilities, conferencing and event space and fitness and leisure facilities set on a1.54 acre site.

The purpose-built Hotel opened in 1984 and was previously operated under an international hotel brand before operating independently until the hotel’s closure in 2020.

Available with vacant possession, unencumbered by brand, franchise or management, providing optimal operational and development flexibility with substantial potential to increase value.

Prime town centre location in the heart of Croydon in close proximity to , one of ’s busiest stations with 25 million passengers in 2019.

Croydon has benefitted from significant recent investment and is set to benefit from further significant investment to regenerate the town centre.

Croydon’s strategic position and excellent transport links make the town attractive to key corporate occupiers that have established Croydon as a premier business location in south London.

Extensive asset management opportunities including: hotel repositioning; extension of the existing property; or redevelopment of the site to increase the massing and change of use (subject to obtaining the necessary planning and all other consents) to potentially superior alternative use values.

The Hotel is situated in the Croydon Metropolitan Centre, the Croydon Opportunity Area and the ‘Edge Area’ for tall buildings, all of which are supportive in principle for additional massing on the site and for alternative uses, potentially unlocking more accretive development proposals.

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Centrale Shopping Centre College Green Boxpark Croydon No.1 Croydon

East Croydon Station

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LOCATION CROYDON DEMAND DRIVERS Croydon Croydon Park Hotel is strategically positioned in Travel Time the heart of Croydon’s commercial centre in close Destination Corporate Occupier Market proximity to both East Croydon (300m) and West (From East Croydon) Croydon (1.2km) railway stations, where there is Clapham Junction 9 minutes Croydon has grown to be the largest office market in the South East outside of Central London, with major corporate occupiers such as HMRC, the Green Network Energy and a frequent service to London Bridge, London London Bridge 13 minutes Victoria and the London Underground Network, EDF Energy all relocating to Croydon in recent years. Over the past five years, Croydon Gatwick Airport 15 minutes as well as London Gatwick Airport and Brighton. has seen c. 1,000,000 sq. ft. of office take up, with notable pre-pandemic deals including London Victoria Station 15 minutes HMRC’s 180,000 sq. ft. tenancy of Building 1 at Ruskin Square and Regus UK’s 118,000 sq. Croydon is easily accessible by road with the M25 St Pancras International 30 minutes ft. occupation of The Lansdowne Building. Whilst the pandemic has caused a slowdown located 10 miles to the south via the M23, which in office take up, in April 2020 the under construction Buildings 2 and 3 at Ruskin Square provides direct access from Croydon to Central were pre-let to the Home Office. London to the north and Crawley and Brighton to the south. East Croydon Railway station is one of the busiest non-terminal stations in London and the UK as a whole and saw 25 million passengers passing Croydon has attracted a large number of leading multi-national companies in the finance, through the station in 2019. London’s Tram network is a major transport service in Croydon, connecting insurance and engineering sectors. The Public Sector also has a significant presence in the the town to Wimbledon in the west and Beckenham in the east. Both East Croydon and West Croydon town. In total, more than 9,000 businesses have chosen Croydon as their home, and the railway stations are on the tram network, which serves approximately 28 million passengers a year. town centre has over 5,600 people working in finance and insurance – the 5th largest cluster in London; and over 2,000 people in engineering – the 8th largest cluster in London. Croydon is located 18 miles north of London Gatwick Airport and can be accessed via train from East Croydon or via the M23. Gatwick is the UK’s second largest airport serving 228 destinations worldwide and over 46 million passengers in 2019. Education Croydon is home to a number of leading education institutions. Croydon College has over 13,000 students enrolled across three sub colleges; Croydon Sixth Form College, Croydon St Pancras International King’s Cross Skills and Enterprise College and the Croydon Higher Education College. Croydon is also home to a number of leading and prestigious independent schools including Whitgift Farringdon Victoria Blackfriars School, Trinity School and Old Palace School. In addition to this, the Brit School, a leading Clapham Waterloo Junction Canary facility for performing arts and technology, is located in the Selhurst area of Croydon, London Wharf Bridge whilst London Southbank University is due to open a campus in Croydon in 2022.

30 Retail & Leisure 15 M4 Wimbledon By way of town centre retail floor space, Croydon has one of the largest retail offerings of CROYDON M25 Heathrow M25 any London Borough, second only to the West End. Comprising 80 shipping containers, M3 New Addington Boxpark Croydon, which opened in phase one of the Ruskin Square development in 2016, 12 4 provides a number of food and beverage outlets and also doubles as a 20,000 sq. ft. events space. Croydon is also home to a Premier League football team, Crystal Palace Football M20 Club, who have been based in the borough since 1918, and play at which has 5 M26 10 been the club’s home since 1924.

M25 9 6 7

Rail London Overground M23 Croydon Tramlink Jubilee Line (Underground) Gatwick 9 Victoria Line (Underground) 6 7 CROYDON PARK HOTEL CROYDON PARK HOTEL

CROYDON REGENERATION

Croydon Town Centre Croydon is one of the UK’s best connected business hubs, being ideally located 15 minutes to both central London or Gatwick and 33 minutes to Canary Wharf. The borough also benefits from the capital’s Croydon is a growth borough and its town centre is a major hub both within the borough and London as only tram network. a whole. East Croydon station welcomes over 26,000 passengers daily and the Council have instigated significant investment, which will transform the centre and create a desirable destination to live, There are 1 million economically active individuals within a 30 minute commute of Croydon. Having work and socialise. been identified as a Growth Zone, it is well on its way to transforming into the “Economic Powerhouse of South London”. This regeneration anticipates the creation of over 23,500 jobs and the local plan sets an ambitious target of nearly 33,000 new homes to be built across the borough by 2036, with over a third of these The regeneration plans are set to transform the 32 million sq ft of industrial and employment set to be developed in the town centre. floorspace into an attractive and environmentally friendly location, so that businesses can operate in a more efficient and effective way.

Fairfield Masterplan • 8 acre site in Croydon Town Centre • The £1 billion development will create 2,000 new homes over the next 15 years. • This mixed-use development will transform the area into the cultural and educational heart of Croydon. • The hybrid planning application was approved in April 2017 and will be developed across a number of phases.

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RESIDENTIAL SCHEMES

Ten Degrees, CR0 1GP Queen’s Quarter () , CR9 3JS Queen’s Square, CR9 1NR • 546 residential units (437 Private BTR) • 513 units (251 Build to Rent & 262 Affordable Rental tenures) • 288 units (265 private units) • Developer: Greystar • Developer: Legal & General and HUB • Developer: R&F Group • 44 storeys • 35 storeys • 28 storeys • Completion: Q1 2021 • Completion: Autumn 2021 • Completion – Phase 1 scheduled for Q3 2022 Phase 2 Pre-Planning

Morello Quarter, CR9 Leon House, CR0 9XT Admiral Court, CR0 4HB • 297 units • 263 units • 65 units (42 private units) • Developer: • Developer: FI Real Estate • Developer: Orbit Homes • 19 storeys • 20 storeys • 10 storeys • Completion – Q4 2014 • Completion: Q3 2018 • Completion – Q4 2019

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CROYDON TRANSPORT LINKS AND DEMAND DRIVERS MAP

A222

EDF Energy and Siemens

West Croydon AECOM

Superdrug Cherry Orchard Road A236

Network Rail

Site of Prince’s Picture House Whitgift HMRC Centre Solium Capital East Corydon Medical Centre Shopping Centre A212 East Croydon

AIG Atkins Wandle Park Ministry of Justice Boxpark Croydon College

A232 Fairfield Croydon The Queen’s Gardens Crown Court Gardens Barclay Road The Tudor Arch Museum of St John’s Gateway Croydon

Park Hill Park

Direct Wrencote Line House

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A232 CROYDON PARK HOTEL CROYDON PARK HOTEL

Area Schedule PROPERTY Floor Use GIA (sq. ft.) GIA (sq. m) BASEMENT Parking*/Plant 7,877 731.8 Accommodation, Food & DESCRIPTION GROUND Beverage, Conferencing 36,176 3,360.9 Facilities, Leisure FIRST Accommodation 15,540 1,443.7 Croydon Park Hotel is a large purpose built full-service hotel that opened in SECOND Accommodation 15,540 1,443.7 1984. The property was originally operated under an international hotel brand THIRD Accommodation 15,540 1,443.7 before being operated independently. FOURTH Accommodation 15,540 1,443.7 In March 2020 the hotel closed as a result of the Covid-19 pandemic, and at a FIFTH Accommodation 15,540 1,443.7 board meeting in June 2020 the previous tenant resolved to place the company ROOF Plant 15,574 1,446.9 into administration and subsequently surrendered its lease. As a result, there TOTAL 137,327 12,758.1 is limited existing FF&E and OS&E within the hotel as the majority of this was sold to satisfy creditors. *Excludes Covered Car Park with GIA of 1,505.7 sq m (1,607 sq ft).

Hotel Overview

ADDRESS 7 Altyre Rd, Croydon CR9 5AA GUESTROOMS 211 FOOD AND BEVERAGE 1 restaurant & 1 bar MEETING SPACE 6 meeting rooms – maximum capacity 345 delegates OTHER FACILITIES Leisure Club with external membership capabilities (Fitness Centre, Swimming Pool and Squash Court) TENURE Freehold SITE c.1.54 acres Comprises two sections: the primary accommodation block NO. OF FLOORS constructed over ground and five upper floors and a further block built over two floors comprising both front and back of house facilities PARKING 110 – mostly covered YEAR OF OPENING 1984 (purpose built hotel)

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HOTEL PROPERTY INFORMATION

Bedroom Schedule F&B Facilities ROOM TYPE NUMBER APPROXIMATE FACILITY STANDARD DOUBLE ROOMS 100 COVERS EXECUTIVE DOUBLE ROOMS 64 OSCAR’S BRASSERIE 160 CLUB ROOMS 6 WHISTLER’S BAR 35 FAMILY DOUBLE-DOUBLE ROOMS 40 DISABLED ROOMS 1 TOTAL 211

MEETINGS AND EVENT SPACE FACILITY SIZE (SQ M) CAPACITY WILLIAM 90 80 – theatre style WOLSEY 90 80 – theatre style WINSTON 90 80 – theatre style CENTENNIAL 270 220 – theatre style or 200 – banquet style JOHNSON 60 40 - theatre style LINDBERGH 60 40 - theatre style DERBY 48 20 – u-shape style BARCLAY 34 15 – boardroom style MARINO 20 10 – boardroom style

LEISURE FACILITIES • Gymnasium • Separate Children’s Pool • Free Weights Area • Separate Male & Female Sauna • Squash Court • Jacuzzi • Indoor Swimming Pool Drawing for illustrative purposes only. Please see page 26 for accurate demise plan.

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Croydon Hotel Market There are 17 existing hotels in Croydon and two hotels in the pipeline. This equates to 1,537 guest bedrooms supplied and 590 potential new bedrooms. By number of hotels, Croydon principally provides Budget hotels (41%), followed by 3-star (18%) and 2-star (12%). The pipeline comprises the proposed 500 bedroom new-build hotel at the Whitgift Quarter and the proposed 90 bedroom new-build Delta Point hotel. As can be seen by the chart below, the Croydon hotel market performance has remained fairly consistent over the seven years from 2013-2019. Occupancy has fluctuated around 80%, and has remained resilient to new hotel entrants coming into the market. ADR and RevPAR has shown steady growth over the period with an ADR CAGR of 2.61%, exceeding year-on-year inflation for the period.

Croydon Market Performance 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 2013 2014 2015 2016 2017 2018 2019

Occupancy (%) ADR (GBP) RevPAR (GBP)

Source: STR

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Potentially acceptable alternative uses PLANNING Due to the good connectivity and accessibility of the Hotel and its location within both the Croydon Opportunity Area and Croydon Metropolitan Centre, which are both areas where sustainable growth is promoted, all of the below uses could be accepted and supported: 1. Residential Development - Croydon have the ambitious target of 32,890 Planning Context homes delivered between 2016 and 2036, and supports the development of Croydon Park Hotel is not listed, nor is it situated within a conservation housing wherever possible. area, and is located within the Croydon Metropolitan Centre and Croydon 2. Employment Development - B1 uses (including office, light industry and Opportunity Area, which are both positive locations when regarded in terms research & development) retail, leisure (including evening/night-time economy of future prospective development. uses), visitor accommodation. Situated within the Croydon Opportunity Area, the Hotel is located in the 3. Co-living - The New London Plan will support such a use where development ‘Edge Area’ for tall buildings, meaning that where it can be demonstrated that is well located in an area well-connected to local services and employment by there will be limited negative impact on sensitive locations and that the form, walking, cycling and public transport and that is of good quality and design and height, design and treatment of a building are high quality, then a tall building contributes to mixed and inclusive neighbourhoods. may be acceptable. 4. Student Housing - The New London Plan’s policy on PBSA states that boroughs should seek to ensure that local and strategic need for purpose-built Potential Massing student accommodation is addressed. Based on the site’s connectivity and central context, a higher density development is likely to be appropriate where the environmental, infrastructure and townscape arguments can be made. It is evident that high building densities have been achieved elsewhere in Croydon where this has been achieved. The Altitude 25 building (Planning Ref: 04/04685/P), which was granted planning permission in May 2006 lies immediately south of the site and extends up to 25-storeys. Permission was also granted in October 2020 for a part 49-storey part 34-storey co-living and residential development (Planning Ref: 19/04987/FUL) on the Land adjacent to Croydon College Road (north west of the site), indicating that taller buildings are considered acceptable in the immediate area.

Source: Vu.City – Croydon Park Hotel (The Site)

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One Lansdowne Central London

The Whitgift Centre Ten Degrees

College Road Mondial House

Fairfield Masterplan - Culture Quarter East Croydon Station

Queen’s Square Leon House

College Annex Queen’s Quarter (Taberner House) College Green

Leon Quarter CROYDON PARK HOTEL

Source: Vu.City – The site with proposed development which is consented (yellow) and under construction (blue). (Viewed from the South East)

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CROYDON PARK HOTEL

Development Opportunities A Formation Architects have undertaken an outline capacity study and developed an indicative scheme in conjunction with a planning report undertaken by Savills planning department. Please find the link to the data room at the back of the brochure to see both the planning report and massing study. The outline design principles are as follows: • Block A: Ground Floor + 38 storeys • Block B: Ground Floor + 9 storeys • Block C: Ground Floor + 9 storeys This study delivers an estimated quantum of 400 units, with a bedroom mix of: • 1 bedroom: 160 (40%) • 2 bedroom: 160 (40%) • 3 bedroom: 80 (20%) • Wheelchair units (M4(3)): 40 (10%) The proposed scheme delivers a total residential GIA of 33,575 sq. m. (361,401 sq. ft.) and a total residential NSA of 26,860 sq. m. (289,121 sq. ft.). B The proposed scheme includes 41 residential parking spaces (10% of units). The scheme also provides two commercial / retail units with a proposed total GIA of 642 sq. m. (6,910 sq.ft.)

C

Source: Formation Architects

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FURTHER INFORMATION CONTACTS

HOTEL CAPITAL MARKETS DEVELOPMENT LAND Oliver Armitstead Andrew Cox Tenure Associate Director, Hotel Capital Markets Director, Development Land T: +44 (0) 2074 099 919 T: +44 (0) 2070 163 851 The property is held Freehold and is registered at HM Land Registry under title number SGL573066. M: +44 (0) 7887 993 696 M: +44 (0) 7967 555 429 E: [email protected] E: [email protected]

Joshua O‘Rourke Lucy Robbie Surveyor, Hotel Capital Markets Associate Director, Development Land T: +44 (0) 20 7409 8031 T: +44 (0) 2074 095 988 M: +44 (0) 7816 530 609 M: +44 (0) 7807 999 526 E: [email protected] E: [email protected]

Rachel George Nuala Morris Graduate Surveyor, Hotel Capital Markets Graduate Surveyor, Development Land T: +44 (0) 20 3107 5413 T: +44 (0) 20 7877 4556 M: +44 (0) 7977 030 170 M: +44 (0) 7866 203 469 E: [email protected] E: [email protected] Ordnance Survey Crown Copyright 2021. All rightsAll reserved. Crown Copyright 2021. Survey Ordnance 100022432. number Licence A4 1:1250. Size – - Paper Plotted Scale

Source: Promap

EPC Data Room Access The Croydon Park Hotel has an EPC rating of Further information can be accessed in the Disclaimer. Savills, and their clients give notice that: E. The full EPC documentation is set out in the project data room. They are not authorised to make or give any representations or warranties in relation to the data room. https://sites.savills.com/Croydon_Park_Hotel property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as Deal Structure Viewings statements or representations of fact. Any areas, measurements or distances are approximate. Asset Sale. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It All viewings are strictly by appointment only. should not be assumed that the property has all necessary planning, building regulation or other Please contact the sole selling agents below to consents and that Savills has not tested any services, equipment or facilities. Purchasers must Process arrange a viewing. Viewings will take place on satisfy themselves by inspection or otherwise. Tuesdays and Wednesdays weekly, with the first Designed and Produced by Roar Image June 2021. A process letter outlining timings and requesting viewing taking place on Tuesday 6th July. Indicative Offers will be distributed in due course.

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