**Cardiff Hotel with Panoramic City Views Up for Sale at £5m – But There’s a Significant Caveat**
A distinctive landmark in the heart of Cardiff, the stylish Hotel Indigo, which offers sweeping city views and a prime location steps from Queen Street, has been listed on the market for £5 million. However, prospective buyers face a crucial detail: this eye-catching sum buys not outright ownership but a long leasehold on the property – the land beneath it stays firmly in the hands of a separate freeholder.
The 122-room boutique hotel, managed under the IHG brand, stands as a testament to Cardiff’s blend of modern vibrancy and historic character. But as is common with prime city centre properties, a long leasehold sale means that the buyer will effectively be renting the building for an extended period – often 99 years or more – while the ultimate authority over the land remains elsewhere. This kind of arrangement is typical for many high-value commercial premises in the UK’s most sought-after locations.
Colliers, the global property adviser overseeing the sale, are keen to stress the hotel’s appeal as an investment opportunity. They point to Indigo’s central address and IHG branding as key selling points. Despite the leasehold limitation, the property’s trading record is robust: for the year ending March 2025, Hotel Indigo generated an impressive revenue of nearly £3.9 million. Such figures are likely to attract experienced hospitality operators eager to tap into Cardiff’s buoyant tourism and business travel markets.
Set within Dominions House, an unlisted early twentieth-century building that was thoughtfully repurposed from former office accommodation, Hotel Indigo showcases both period charm and contemporary flair. The property covers six upper floors, plus ground and basement levels, providing ample space for guest accommodation and amenities. Notably, the reception area is housed within the atmospheric Dominions Arcade, setting a welcoming tone for visitors.
The hotel’s facilities underscore its luxury credentials. Each of the 122 rooms is air-conditioned and styled with inspiration from the surrounding neighbourhood. Guests can unwind in the chic lounge, sip cocktails at a bar with striking city vistas, or take in the sights from a serene roof terrace. Lefel 6, the signature 90-cover restaurant, promises diners an elevated culinary experience, while Bute & Co, the on-site coffee house, blends elements of Welsh heritage and design, offering a relaxed social hub.
Location remains one of Hotel Indigo’s most compelling attributes. Queen Street, Cardiff’s leading retail destination, sits just moments away, ensuring steady footfall from shoppers, tourists, and business visitors alike. Cardiff’s reputation as a capital of culture and commerce is burnished by attractions like the Principality Stadium, mere minutes from the hotel. The surrounding area draws up to 18 million visitors annually, and the hotel’s proximity to universities and major employers further underpins its consistent patronage.
Industry experts at Colliers believe the sale will spark considerable competition among investors. Josh Sullivan, associate director in Colliers’ Hotels division, describes it as “a rare opportunity to acquire a highly visible, branded property in a central capital city location, at a price point that will appeal to a breadth of operators and investors.” The transaction is being managed by Jo Edwards, head of the south west and Wales team at Colliers, who is available for further enquiries.
While ownership is limited by the leasehold structure, the chance to helm a successful hotel in such an exceptional location – coupled with the backing of an established brand like IHG – looks set to draw strong interest from both domestic and international buyers keen to expand their presence in Cardiff. Of course, any potential purchaser must carefully consider the long-term costs and obligations that leaseholds entail, a factor that has become ever more prominent in the UK’s dynamic property sector.
As Cardiff continues to evolve as a city break destination and business hub, properties like Hotel Indigo remain tightly held and seldom come to market. This sale, for all its complexities, offers a unique opening for the right investor to secure a slice of the capital’s ever-changing skyline.