Altius Real Estate Bets Big on Morley House, Holborn
London’s real estate scene just got a jolt. Altius Real Estate stepped in and grabbed Morley House, known locally at 26–30 Holborn Viaduct, for a hefty £60 million. No old-school hotel here—this spot is marked as a £250 million opportunity in the heart of the City. The cost tallies up to £420 per square foot, and it’s not just a simple sale. It’s a statement about the kind of play investors want in Central London right now.
The site currently stands empty but has full planning consent to create a Holborn hotel with 274 rooms, spread over 142,790 square feet. Think basement to rooftop, plus 11 floors above ground. The development hasn’t just popped up on the radar, either. The location puts it right near industry giants like Goldman Sachs’ London headquarters and Amazon Web Services’ offices. That’s not a coincidence—hoteliers and developers both see the draw of a neighborhood buzzing with bankers and tech leaders.
From Office Block to Sky-High Hotel Dreams
This site shows off how fast the City’s vibe is changing. Morley House was once earmarked as prime office space, but the wind is shifting toward hotels and alternative uses. The hotel project’s planning blueprint doesn’t mess around: it involves tearing down the current building and building a striking new one with modern amenities, including a sweet rooftop bar. The plans originally called for 226 rooms, but the green light now lets Altius expand the ambition up to 274 keys.
The journey of Morley House has been anything but straightforward. HIG Capital got its hands on the property by putting up a £76 million mezzanine loan to Shiva Hotels back in 2022. That loan wasn’t just for Morley House; it was tied into a string of hotel projects stretching across Central London. To make the numbers work, Shiva Hotels had £130 million of debt with ICG and Bank Leumi. Add another £100 million of equity, and you get a sense of the stakes involved for everyone at the table.
This deal isn’t just about one building—it's a snapshot of a much broader trend. According to Savills, central London office-to-hotel conversions have caught investor imagination this year. January alone saw over £440 million change hands across five big City office deals, with each one averaging around £88 million. That’s the highest monthly turnover since the end of 2023. Savills and Cushman & Wakefield, the property agents behind the Morley House deal, said they saw deep, sustained interest from investors wanting to buy up office buildings and transform them for new uses.
For Altius Real Estate, the prize isn’t just a patch of land—it's a shot at tapping into soaring demand for hospitality in one of London’s most active business hubs. As Morley House prepares to rise again, you can bet London’s skyline, and its property map, will keep shifting right along with it.