O2 to host hotel and conference centre

Property Week

One of Europe's largest hotel conference centres will be developed on a site next to the 02 arena in Greenwich.

02 Hotel and Conference Centre

Opportunistic investment manager Queensgate investments has agreed its debut deal to buy from 02 owner AEG hte long leasehold of a 3 hectare site on the River Thames, which links directly into the 02. It aims to develop a 452-bedroom luxury hotel, conference centre and residential scheme.

Queensgate Investments Fund I was launched in April 2012 by ex London & Regional director Jason Kow and LJ Group. It was agreed a $450m joint venture with several private investors to develop the site.

They have signed a hotel management contract with Surinder Arora's Arora Hotels, and it is understood heads of terms are in place on a franchise agreement with Intercontinental Hotels Group.

AEG is said to have retained minority equity interest and already has planning consent.

The scheme will comprise two buildings: one with the hotel, 30,000 sq ft of conference space, and a 3,000 seat ballroom, and the other with 100 private service flats.

Construction is expected to begin in the first quarter of this year, for completion in 2015.