Evolution Investment Fund, a newly established vehicle backed by the UAE-based Shanshal family, has acquired two landmark luxury hotel assets in Mayfair from O&H Grafton Developments, representing a total capital commitment of approximately £1.1 billion including development costs. The deals – one an operational five-star hotel, the other a fully consented development site – mark Evolution’s entry into the London market and signal the continued appetite of Gulf-aligned capital for prime UK hospitality real estate.
The first acquisition is a long leasehold interest in the London Marriott Hotel Grosvenor Square, a 237-key, 198,000 square foot property on the north side of Grosvenor Square. The hotel is currently home to Gordon Ramsay Bar & Grill, Lucky Cat by Gordon Ramsay, a cocktail bar and lounge, and a ballroom – a food and beverage profile that positions it well above standard Marriott-branded product and into the ultra-premium segment of London’s hotel market.
The second acquisition is the fully consented development site at 8-10 Grafton Street and 22-24 Barlow Place, near New Bond Street. Designed by Foster + Partners, the approved scheme comprises a 12-storey, 157,000 square foot building delivering 94 hotel rooms and six luxury residences. Evolution intends to develop and operate both assets directly, rather than appoint a third-party manager.
Evolution was launched in 2025 by the Shanshal family, whose broader business interests span logistics, telecoms, automotive and construction. The fund is incorporated in the British Virgin Islands with a stated strategy of acquiring, developing and repositioning luxury hospitality assets in gateway cities globally. The two London acquisitions are, by the family’s own description, the first of what they expect to be a sustained UK investment programme. “Our first two acquisitions in Mayfair are much more than prime London assets,” a family spokesperson said. “They represent our long-term conviction in the enduring quality, resilience and global appeal of this magnificent city.”
The appointment of former UK Chancellor Nadhim Zahawi as director of the acquisition entities adds a notable dimension to the deal. Zahawi, who founded research firm YouGov before serving as Conservative MP for Stratford-upon-Avon and reaching the Cabinet, brings established networks across government, business and property that are clearly valued as Evolution moves from fund establishment into active development and operations. Zahawi framed his appointment in terms of delivering “world class luxury hospitality assets in Mayfair and in the UK.”
Spartan Management Services, led by Richard Faber, acted as exclusive financial and strategic adviser to Evolution across both transactions, originating, structuring and leading negotiations. Patrick Williams of Fried Frank advised on UK legal matters and Madeleine Fabre of Ginestie on structuring.
The transaction lands in a London hotel market that continues to attract significant overseas institutional and family-office capital, even as operating conditions remain nuanced. London was confirmed as Europe’s most visited city in 2025, and the luxury segment of its hotel market – particularly Mayfair and the West End – has consistently demonstrated stronger rate and occupancy resilience than mid-market stock. According to PwC’s most recent UK hotels forecast, London RevPAR is expected to grow by 1.8 per cent in 2026, with average occupancy reaching 81.6 per cent, as the market moves through a moderate recovery phase.
PwC also identified a widening performance gap between repositioned or newly branded assets and older unimproved stock – precisely the dynamic that Evolution appears to be targeting. The London Marriott Grosvenor Square, as an existing operational property with a strong food and beverage programme in one of London’s most prestigious addresses, offers a platform with both current income and refurbishment upside. The Grafton Street development, by contrast, is a ground-up opportunity in a district where new luxury supply is exceptionally scarce and barriers to entry remain high.
For HR and senior leadership professionals in the hospitality sector, the transaction has meaningful implications beyond the headline figure. A newly launched fund with direct ownership ambitions – rather than a branded operator managing on behalf of an absent investor – will need to build an operations team capable of running two materially different assets simultaneously: an established full-service hotel and a pre-opening greenfield development. That talent brief, likely to include a senior executive layer drawn from the upper end of London’s luxury hotel pool, will enter a market already competing for the same profiles.
The Mayfair address also carries specific workforce expectations. Properties in this district consistently rank among the most demanding in the London market for service consistency, guest-to-staff ratios and operational sophistication. For incoming ownership intent on self-operating, the recruitment and retention strategy for both properties will be as consequential as the capital structure that underpins them.
London’s position as a sustained target for Gulf-linked capital in premium hospitality is not new – but the scale and ambition of Evolution’s entry is notable given the fund’s recent establishment. Whether the Shanshal family follows the well-worn path of engaging a major branded operator for the Grafton Street development, or continues its stated intent to operate independently, will be closely watched by others considering similar moves in the market.
