Alrov Group in pole position for Crown Estate’s Regent Street prize
Israeli hotel operator, property developer and investor Alrov Group is frontrunner to take control of the Crown Estate’s Café Royal site on London’s Regent Street.
Alrov, the Israeli-listed firm run by Alfred Akirov and his family, plans to create a 160-bedroom luxury hotel on the site of the Café Royal, which is part of the Crown’s 1m sq ft Quadrant redevelopment on the iconic street.
The Crown expects to receive planning permission next month for its 1m sq ft scheme, which includes the redevelopment of Café Royal, Regent Palace Hotel and Quadrant Arcade at the southern end of Regent Street, off Piccadilly Circus, which, when completed will be valued at more than £750m.
Tel Aviv-based Alrov is thought to be close to agreeing a deal with the Crown to develop and operate the luxury hotel on the site.
Alrov has been searching for schemes in European cities that have ‘strong tourism demand, landmark buildings in prime positions with a focus on six-star hotel category’.
It had been in talks to create a luxury hotel at Somerset House, the 18th-century neo-classical palace that formerly housed the offices of the Inland Revenue. However, talks have since broken down.
In Israel, Alrov owns several flagship properties, among them the 384-bedroom David Citadel hotel in Jerusalem.
Its first European venture is the Conservatorium in Amsterdam.
It bought the site last year and is planning a 130-bedroom, five-star hotel and retail development.
Alrov is 73%-owned by the Akirov family with 26% of the business in public ownership on the Tel Aviv Stock Exchange.
It manages more than 730 hotel rooms across the Middle East and Europe through its Alrov Properties & Lodgings arm. It also runs a property development and investment arm and owns offices and retail buildings across Israel, Switzerland and France.
CB Richard Ellis advised the Crown Estate at Regent Street .