A newly established investment fund has made its first purchases, buying a landmark London hotel, and investing in a development opportunity in the English capital.
The acquisitions are the first moves for Evolution Investment Fund, which has been set up to build a portfolio of luxury hospitality assets. The fund will look around the globe for the best opportunities, and has around GBP1.1 billion of financial firepower. By starting its campaign in the UK, it has issued a major vote of confidence in the long term performance of the London market.
A Landmark Acquisition
The London Marriott Grosvenor Square is the first standing hotel asset to be welcomed into the fund. The 237 room property was acquired on a long leasehold basis, The property has operated as a Marriott hotel since 1985, when it became the brand’s first presence in the city. It will continue to trade as a Marriott, under a long term management agreement.
At the same time, the fund has acquired a development project at 8-10 Grafton Street. The site has long been awaiting redevelopment, having been earmarked for a luxury Cheval Blanc hotel, prior to the pandemic. More recently the project has been refined, and now comprises plans for a 94 room hotel, six residences, retail and office space. Designs by architect Foster + Partners will now be fully executed.
“Our first two acquisitions in Mayfair are much more than prime London assets,” commented a spokesman for Evolution. “They represent our long-term conviction in the enduring quality, resilience and global appeal of this magnificent city. We plan to invest significantly in these locations, driven by a firm belief in their exceptional long-term appeal.”
The fund was esatblished during 2025 by the Shansal family. Indicative of its plans to build a significant portfolio, the Evolution fund has appointed Nadhim Zahawi, to the board of the acquisition entities. He commented: “I look forward to using my experience to support the Shanshal family and team to deliver world class luxury hospitality assets in Mayfair and in the UK.”
Entering a Busy Marketplace
The newly acquired assets will compete in a London hotel marketplace that will see plenty of new inventory join the luxury segment, during 2026. In the second half of the year, five star openings will include the Hyatt Regency London Olympia, to the west of the centre, with 204 rooms and part of the Olympia exhibition centre redevelopment.
Accor’s Ennismore lifestyle division will introduce its Delano brand to the UK capital, opening a 67 room hotel on a site close to Kensington Gardens. Singapore’s Royal Group is advancing plans to convert former bank offices in Piccadilly to create a luxury, 50 room hotel. And overlooking the River Thames, the Arundel Great Court Hotel project, with 113 rooms, is expected to complete before the year end.
