Firmdale plans new London hotel after record year

Firmdale has said it is looking to develop a new London hotel following a record year for the business.

The group runs eight London properties, including the Ham Yard Hotel, the Soho Hotel and the Covent Garden Hotel, as well as three sites in New York.

Filings show Firmdale acquired a long leasehold interest in three adjacent buildings in Bloomsbury in April 2022 which it plans to convert to a “first class hotel”.

This would form part of the Firmdale Town House collection, which includes Number 16 in South Kensington, the Dorset Square Hotel in Marylebone and the Knightsbridge Hotel in Knightsbridge.

The group said it was “actively seeking” further development opportunities in London.

It comes after its London hotels reported record revenue of £120.4m in the year to 31 January 2024, a 3.4% increase with growth in both rooms and food and beverage sales.

Firmdale said international visitor numbers and spend in the UK continued to rise despite “stagnant growth” in the wider economy.

Average room rates dropped 1% to £562 but London occupancy rose 3% to an average of 75%.

This drove a 3.2% increase in revenue per available room (revpar) across Firmdale’s London hotels.

Both Firmdale’s London and New York hotels saw a drop in business due to the 2023 Hollywood actors’ and writers’ strike, which briefly put a stop to the hotels being used for promotional purposes.

Group turnover was £198m, a 2.9% increase and a new record for the business, while pre-tax earnings dropped slightly to an £18.4m profit.

Firmdale’s New York hotels the Crosby Street Hotel and the Whitby Hotel were both awarded the maximum three Michelin Key rating for hotels earlier this year. Firmdale also opened a third New York hotel in the Tribeca area in February.

The group has net liabilities over £370m driven by three “sizeable” long-term loans which are due to mature in November. However, heads of terms have been agreed with two major high street banks and a US loan will be extended for 12 months.