Construction is set to begin on a major £230 million aparthotel development in Farringdon, central London, following the formation of a joint venture between European property developer Penta Real Estate and hospitality operator Staycity Group.
The ambitious project will see the redevelopment of the existing Morley House site, close to Holborn Viaduct, into a new 11-storey aparthotel comprising 350 guest rooms.
The development represents a substantial investment in London’s hospitality property sector, responding to continued demand for high-quality, flexible accommodation in well-connected central locations.
Altius Real Estate has been appointed development manager and will oversee the project throughout its delivery.
Major Hotel Development in Farringdon
The scheme will involve the demolition of the existing office building at Morley House, clearing the way for the construction of a modern hospitality development.
Once completed, the 11-storey building will provide 350 rooms operated by Staycity Group, expanding the company’s accommodation offering in the capital.
The development will occupy a prominent location close to Holborn Viaduct, within easy reach of Farringdon’s commercial districts and transport connections.
The project is expected to appeal to business travellers, tourists and visitors seeking flexible accommodation within central London.
Construction is scheduled to commence following the demolition programme, with completion of the new building targeted for 2029.
Penta Real Estate and Staycity Form New Partnership
The development marks the first joint venture between Penta Real Estate and Staycity Group, bringing together the developer’s investment and property expertise with Staycity’s experience in operating aparthotel accommodation.
Penta Real Estate has identified London as an important market for future investment, with the Farringdon project forming part of its ambitions to deliver high-quality developments in established urban locations.
Pavel Streblov, Country Managing Director at Penta Real Estate, welcomed the partnership and highlighted the appeal of the location.
“This is a really exciting project in a lively and dynamic part of London,” he said.
“Staycity Group has a great track record of delivering and operating attractive aparthotel accommodation to meet strong and growing demand in central London and we are looking forward to embarking on this first JV with the brand.”
Streblov also emphasised Penta’s appetite for further investment in the capital.
“At Penta, we have significant investment appetite for London and delivering high-quality, sustainable and thoughtful development projects in vibrant locations such as Farringdon truly plays to our strengths.”
New Opportunities for London’s Construction Sector
The £230 million redevelopment represents a significant opportunity for the construction and specialist building services industries.
Transforming the existing commercial site into an 11-storey hospitality building will require extensive demolition, structural construction, mechanical and electrical installations and specialist interior fit-out works.
The scheme also highlights the continued redevelopment of ageing commercial properties in central London, where established office sites are being reconsidered for alternative uses, including hotels and serviced accommodation.
For developers and investors, aparthotels provide an alternative hospitality format, combining elements of traditional hotel accommodation with the flexibility associated with serviced apartments.
The Farringdon project will add further accommodation capacity to London’s hospitality market while contributing to the ongoing transformation of the surrounding commercial district.
With demolition and main construction activity set to progress, the development represents another substantial addition to the capital’s hotel construction pipeline.
Scheduled for completion in 2029, the new 350-room aparthotel will establish a significant new hospitality destination near Holborn Viaduct, while marking the beginning of a new development partnership between Penta Real Estate and Staycity Group.
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