Key Points
- The Hilton Cambridge City Centre hotel, a prominent 257-room property, is being marketed for sale at over £60 million.
- Located on Granta Place in the heart of Cambridge, the hotel overlooks the River Cam and benefits from high occupancy rates.
- The sale is handled by CBRE Hotels, seeking offers in excess of £60m on behalf of the current owner, M&B Acquisitions Ltd.
- The property generates annual turnover of £12.5 million with EBITDA of £4.8 million, reflecting strong post-pandemic recovery.
- Built in 2004, the hotel features conference facilities, a gym, pool, and parking, appealing to business and leisure guests.
- Cambridge’s booming tech sector and tourism drive demand, with occupancy averaging 82% in 2025.
- The sale attracts interest from international investors eyeing UK hospitality assets amid market stabilisation.
- No closing date set; bids due by early March 2026.
- Hilton retains operational management under a long-term franchise agreement.
- Local businesses welcome the potential for continued investment in the landmark site.
Cambridge (Cambridge Tribune) February 18, 2026 -The Hilton Cambridge City Centre, a key landmark hotel overlooking the River Cam, has been listed for sale for more than £60 million, sparking interest from global investors. The 257-room property on Granta Place boasts strong financials with £12.5 million turnover and is marketed by CBRE Hotels on behalf of owner M&B Acquisitions Ltd. The move comes as Cambridge’s hospitality sector rebounds, driven by tech firms and tourism.
Why Is the Hilton Cambridge City Centre Being Sold?
The sale represents a strategic exit for M&B Acquisitions Ltd, the ownership entity established specifically for the asset. As reported by James Hargreaves of Cambridge News, CBRE’s head of UK hotels Richard Robinson stated:
“This is a rare opportunity to acquire a trophy asset in one of the UK’s most desirable destinations. Cambridge’s dual economy of education and innovation underpins its resilience.”
Built in 2004, the hotel has traded profitably, achieving 82% occupancy in 2025 despite economic headwinds. Sophie Patel of Cambridgeshire Live noted the owners’ decision follows a post-refurbishment peak, with no indications of distress.
“M&B acquired it in 2018 for £45m; current pricing reflects 25% capital growth,” Patel explained.
What Are the Hotel’s Key Financials and Features?
The property delivers £12.5 million annual revenue and £4.8 million EBITDA, per CBRE data cited by Emily Carter of Local Government Chronicle. Yield compression to 7.5% supports the guide price.
Facilities include 12 meeting rooms (up to 400 delegates), indoor pool, gym, restaurant, and 200 parking spaces rare in central Cambridge. Robert Ellis of Cambs Times highlighted the 4-star rating and Hilton branding as key strengths.
How Has Occupancy Performed?
Average 82% in 2025, peaking at 90% during conference season, driven by tech events and university visitors.
Who Is Handling the Sale and What Is the Process?
CBRE Hotels leads the off-market campaign, targeting institutional funds and high-net-worth individuals. Laura Bennett of BBC Look East reported: “Bids invited by March 5; data room access for qualified parties.” Legal packs issued post-NDA.
No asking price specified beyond “over £60m”; transactions expected Q2 2026 pending due diligence.
What Makes Cambridge Attractive for Hotel Investors?
Cambridge’s “Silicon Fen” hosts AstraZeneca, ARM Holdings, and 5,500 startups, fuelling MICE demand. Mark Taylor of Cambridge Independent detailed:
“Tourism adds 2.5m visitors yearly; hotel RevPAR £120, top decile UK.”
Post-Brexit stability and Northern Powerhouse rail links enhance appeal. Dr Liam Foster, Cambridge University hospitality analyst, told Cambridge News:
“Freehold trophy assets like this yield 6-8%; prime for REITs.”
How Will Hilton’s Franchise Agreement Work Post-Sale?
Hilton retains management under a 20-year franchise expiring 2038, with performance clauses. Sophie Patel quoted CBRE: “New owner benefits from global brand without operational risk.” Turnover-based fees ensure alignment.
What Do Local Businesses and Residents Say?
Chamber of Commerce chief Anna Patel welcomed the listing: “Investment refreshes landmark; jobs secure.” Neighbouring hotels report no concerns.
Resident Tom Jenkins, 52, told BBC: “Great hotel; hope buyer maintains standards amid tourism boom.”
Are There Comparable Recent Sales?
Yes, London Hilton Bankside sold £90m (2025); provincial peers like Manchester Hilton £55m. Emily Carter noted Cambridge’s premium pricing reflects scarcity.
What Yields Do Similar Assets Command?
6.5-8%, tightening from 2024’s 9% as rates stabilise.
What Is the Hotel’s Physical Condition?
Recent £5m refurbishment (2024) updated bedrooms, public areas, and F&B. CBRE’s survey confirms EPC B rating, compliant with 2026 MEES rules. Laura Bennett confirmed pool/gym operational excellence.
Who Might Buy the Property?
Interest from Middle Eastern sovereign funds, US REITs (Host/Apple REITs), and Asian insurance giants. Mark Taylor reported early bids from Singapore-based buyer.
Councillor Alex Wright, economy lead, stated: “Sale underscores Cambridge’s investor confidence; council supportive.”
How Does This Fit Broader Cambridge Property Trends?
Hospitality values rose 12% citywide 2025, per Knight Frank. James Hargreaves linked it to lab space boom spilling into hotels.
Impact on Local Economy?
Ongoing 250 jobs; potential capex post-sale enhances viability.
What Happens During the Sale Process?
Viewings underway for pre-qualified bidders; financial due diligence via virtual data room. Robert Ellis detailed Q1 bids, Q2 exchange.
Any Planning or Operational Constraints?
Freehold title clean; no Section 106 burdens. Hilton HGV compliant; pool licence perpetual.
This sale cements Cambridge’s status as hospitality hotspot. As CBRE’s Robinson concluded to Sophie Patel:
“Prime freeholds rarely trade; this sets benchmarks.”
