£230m Farringdon aparthotel set for 2029 completion

By Marcus Bennett

Penta Real Estate and Staycity Group are set to start main construction of a £230m, 350-room aparthotel at Morley House in Farringdon, central London, with completion of the 11-storey building expected in 2029.

The site lies near Holborn Viaduct. The existing office block gives way to 350 aparthotel rooms in an 11-storey building. Altius Real Estate is acting as development manager for the full project.

How is the £230m scheme being delivered?

Penta Real Estate and Staycity Group have established a joint venture to fund delivery. Penta is a Central European developer and investor. Staycity is an aparthotel operator. Their 350-room scheme brings the two roles together at Morley House.

Pavel Streblov, Country Managing Director, Penta Real Estate, identified the partnership’s significance: “Staycity Group has a great track record of delivering and operating attractive aparthotel accommodation to meet strong and growing demand in central London and we are looking forward to embarking on this first JV with the brand.”

According to Streblov, the joint venture is Penta’s first with Staycity. The arrangement divides the work among three firms. Penta and Staycity fund delivery through the JV. Altius manages development throughout the project.

For developers and operators, the structure joins capital, operating expertise and site management within one project. Morley House places Penta and Staycity’s first joint venture on a common central London site. Altius’s site-wide remit supplies continuity across the pre-construction and construction phases.

What changes at Morley House?

Demolition first. Main construction next. The 11-storey replacement will provide 350 aparthotel rooms, with completion expected in 2029.

For contractors, the programme moves from demolition of the office block to main construction on the replacement. Altius’s appointment spans that transition and the wider project. The sequencing makes demolition the immediate physical task, even though the 2029 date sets the project’s longer horizon.

Why did Penta choose Farringdon?

Streblov described the location and company strategy in two statements. He said: “This is a really exciting project in a lively and dynamic part of London.” He also said: “At Penta, we have significant investment appetite for London and delivering high-quality, sustainable and thoughtful development projects in vibrant locations such as Farringdon truly plays to our strengths.”

Within those remarks, Streblov linked Staycity’s operating record to what he called “strong and growing demand” in central London. He also presented Farringdon as a fit with Penta’s stated appetite for London and for high-quality, sustainable and thoughtful projects.

The venture advances two stated priorities at once: a new joint venture for Penta and further investment in central London.

What should the industry watch?

The immediate milestone is the start of main construction after demolition. The longer deadline is expected 2029 completion of the 11-storey building. Between them, the project introduces Penta’s first joint venture with Staycity and gives Altius a role throughout development.

For developers and hotel operators, the £230m Farringdon scheme shows how a developer-investor and an aparthotel operator can fund a project together while a separate firm manages development throughout. The next checkpoint is the move from demolition to main works; the stated endpoint is completion in 2029.