The Pilgrm is a 73-key, design-led independent hotel in Paddington, W2 - nationally recognised in the press (Telegraph, Condé Nast Traveller, Monocle, Time Out, Evening Standard) for a distinctive, compact-format proposition built around design, location and atmosphere rather than extensive facilities. 

Structure 38-year leasehold, rent reviews every 21 years, next review 2027. Head lease rent £450k pa; hotel-level P&Ls show rent at c.£217k, with retail unit income apparently accounted for outside the hotel accounts. Exact mechanics, current rent level and treatment of retail income to be confirmed. 

Price £17m, of which c.£15m is the leasehold interest and £2m the brand/IP. Seller estimates c.£25m if freehold - consistent with comparable freehold transactions we’ve reviewed in W2/Paddington, so the leasehold discount reflects lease structure, not asset distress. 

Trading EBITDA consistently £1.3m–£1.4m over 8 years (excluding a £1.5m post-Covid peak two years ago). Occupancy high-80s%, ADR (net) £153. 

Implied entry multiple c.10.7x–11.5x EBITDA on the leasehold interest alone; c.12.1x–13.1x including brand/IP. Subject to confirmation of the rent basis underlying the EBITDA figures. 

Potential upside Acquiring the lease may also capture the retail unit rental income, which on current reading sits outside the hotel accounts - to be confirmed. Separately, the freehold is held by a long-standing local family who have not historically sold, though it is thought an above-market offer might be considered - a longer-term route to closing the c.£8m leasehold-to-freehold value gap.