Investment Fund Buys Two London Hotels for £1.1B
Evolution Investment Fund has acquired two landmark luxury hotels in London's Mayfair district. The deal represents a £1.1 billion commitment, signaling strong investor confidence in the premium hospitality asset class.
- The two assets acquired are the 237-room London Marriott Hotel Grosvenor Square and a fully approved luxury hotel development site at 8-10 Grafton Street & 22-24 Barlow Place, near New Bond Street. The total £1.1 billion figure includes the cost of acquiring the long leasehold on the Marriott and the subsequent development of the new hotel. - The new development, designed by architects Foster + Partners, will feature a 12-story tower with 94 hotel rooms and six luxury residences, creating a new "ultra-prime" hospitality destination in Mayfair. The seller of this development site was O&H Grafton Developments Limited. - The buyer, Evolution Investment Fund, was launched in 2025 by the UAE-based Shanshal family. The family's business interests are diverse, spanning logistics, telecommunications, automotive retail, and construction across the Middle East. This deal marks their first major acquisition in London's Mayfair hospitality market. - In a significant political and business crossover, the fund has appointed former UK Chancellor of the Exchequer, Nadhim Zahawi, as a director for its UK acquisition entities. Zahawi stated he will use his experience to support the family in delivering world-class luxury hospitality assets. - The London Marriott Hotel Grosvenor Square was last sold in March 2014 for over £125 million to a Hong Kong-based investment vehicle, which equated to approximately £528,000 per room at the time. The hotel will continue to be operated by Marriott under a long-term management agreement. - This major investment aligns with a broader trend of high-value transactions in London's luxury hotel market. For comparison, recent sales in 2024 included the 168-room ME London for a reported €275 million (approximately £1.6 million per key) and the 109-room Six Senses London for around €180 million (about £1.7 million per key). - The Mayfair hotel market is experiencing a period of significant development, with several new luxury properties set to open. This includes the anticipated 2026 openings of the 102-room Cambridge House Auberge Resorts Collection and the 100-room Waldorf Astoria London Admiralty Arch, indicating strong competition and confidence in the top tier of the market.
