Description
The Soho hotel development opportunity at 18–20 Warwick Street presents a rare freehold investment in London’s most dynamic sub-market. Nestled between Carnaby Street and Regent Street. This Grade II listed double-fronted building delivers 19,026 sq ft of boutique hotel. In addition a private members’ club space over basement to fifth floors. Crowned by an 873 sq ft rooftop terrace with panoramic West End views.
Constructed c.1900–1906 in late Victorian Renaissance and Arts & Crafts styles. The property comprises 30 guest rooms (compact to loft-suite formats), a ground-floor bar & restaurant. Operated by three-time Michelin-starred Chef Garry Hollihead, and a basement cinema room. Single-let to The Sanctum London Ltd until 2045. Moreover, the property generates £1 million pa in RPI-linked rent, rising to a minimum £1.2 million pa at the March 2026 review. The vendor will top up the rent to this level if actual RPI falls short.
In March 2022 Westminster City Council granted full permission (ref. 21/07390/FULL) for façade alterations, rooftop extensions on fifth, sixth and part-seventh floors, and internal reconfiguration to create 98 smaller guest rooms (+2,023 sq ft). This scheme aligns with Soho planning policy that supports heritage-sensitive hotel expansions in the Central Activities Zone.
With planning in place and long-dated lease security, investors can hold for stable RPI-linked income (current yield 3.70%, rising to 4.44% in 2026) or implement redevelopment to unlock substantial value through room-count expansion. Either strategy offers exposure to London’s resilient luxury hotel market, where RevPAR for high-end boutique hotels reached £340 in 2024 and occupancy topped 82%.
Income & Investment Metrics
Current Rental Yield: 3.70%
Guaranteed Yield from 2026: 4.44%
Post-Development ROI Scenarios (98 rooms)
| Scenario | Occupancy | RevPAR | ROI (Total Inv.) | ROI (Purchase) |
|---|---|---|---|---|
| Conservative | 75% | £340 | 13.73% | 17.80% |
| Base Case | 79% | £340 | 13.73% | 17.80% |
| Optimistic | 82% | £380 | 15.35% | 19.90% |
| Post-development ROI assumes £8 million development cost and 46.5% GOP margin. |
Location
18–20 Warwick Street sits at the heart of Soho’s West End CAZ, surrounded by theatres (Prince of Wales, Soho), dining (Kingly Court, Carnaby), nightlife and retail. Oxford Circus, Piccadilly Circus and Oxford Street are within a 5-minute walk, with Oxford Circus Underground providing Bakerloo, Central and Victoria lines.
Internal Link: West End Area Guide
External Link: westminster.gov.uk/planning-and-building-control/planning-permission
Listing Updated: 01 August 2025, 11:32
