Oxford Castle Quarter Comes to Market

The property is being offered for sale with a guide price in excess of £30.94m, reflecting an attractive net initial yield of 7.25%. Oxford Castle Quarter comprises a 95-bedroom hotel and 39,134 sq ft of leisure units, currently tenanted by established restaurant, bar, and leisure operators. The estate is fully let, benefiting from a weighted average unexpired lease term of 14.8 years.

The hotel is secured by a turnover-linked lease with Malmaison, a prominent hotel brand and operator in the UK. The hotel benefits from the Oxford hotel market’s exceptionally high barriers to entry, which result in limited new hotel supply. This supply-constrained environment, coupled with the city's appeal to approximately eight million international visitors annually, strongly supports the hotel's sustained revenue growth.

The site's rich heritage dates back to its origins as a Royal Castle in 1071. After serving as a prison between 1785 and 1996, the property underwent a major conversion and was first opened as a hotel and leisure complex in 2006. The development retains its architectural significance.