Market 2018
October 2018
Scarborough’s South Bay viewed from Travelodge
TRAVELODGE SCARBOROUGH ST NICHOLAS, YO11 2EU
Scarborough Borough Council purchases Travelodge Hotel investment
Scarborough Borough Council has purchased the Travelodge Hotel building in central Scarborough in line with their policy to acquire high quality commercial property investments, particularly in their local area.
The 140 bedroom hotel is in a prime hotel location on St Nicholas Cliff, above the town’s South Bay. It is let to Travelodge for an unexpired term of almost 30 years, with 5 yearly rent reviews linked to uncapped movements in RPI. Following the September 2018 rent review the purchase is expected to show a net return of close to 6%.
Richard Bradley, Scarborough Borough Council Commercial Director said: "This is our first major investment since adopting our Commercial Property Investment Strategy earlier in the year. The strategy focuses on acquiring commercial property investments that can result in positive financial returns for the council to help support our public service delivery. The purchase of the Travelodge Hotel building was an ideal opportunity for us and we will continue to seek other investment opportunities going forward."
The vendor was a private client of Lewis & Partners and Knight Frank. Scarborough Borough Council was advised by Edgerley Simpson Howe and NJB Hotels & Leisure Property.
August 2018
Premier Inn Ipswich Town Centre Quayside
OFF-MARKET HOTEL INVESTMENT ACQUISITION
PREMIER INN IPSWICH TOWN CENTRE QUAYSIDE, IP4 1BZ
KFIM’s Long Income Property Unit Trust, advised by NJBHLP, has completed its acquisition of this Ipswich Premier Inn, following detailed due diligence, in a transaction conducted totally off-market.
The key central town location (in Key Street!) of this modern, purpose built Premier Inn hotel, is identified in its name, as the closest budget hotel to the ‘town centre’, but a few steps to the Ipswich ‘quayside’ waterfront at Neptune Marina, a vibrant business, education and leisure destination alongside a working port. Premier Inn Quayside has 85 bedrooms, a Thyme restaurant in-house, two dedicated car parks and the potential to extend. The hotel is also very prominently sited.
Nick Barber of NJBHLP, who acted for KFIM, described the hotel as being ‘a great addition’, with the Premier Inn covenant being ‘much sought after by long income funds’, adding, “We were delighted to source such an acquisition off-market and to be afforded fair opportunity by the vendor’s team to complete our research”. The sellers, Barings, were advised by JLL.
June 2018
Travelodge Dagenham
TRAVELODGE LONDON DAGENHAM, RM9 6UQ
NJBHLP has acted as joint advisor with ADS to pension fund manager KFIM in the acquisition of the brand new ‘Travelodge London Dagenham’, constructed in a highly prominent position adjacent the A13 trunk road, which runs parallel with the north side of the River Thames, linking London with the M25 and Dartford Crossing, and on to Southend-on-Sea. The hotel, which includes its own bar café and dedicated parking, sits within the London East Leisure Park, where other occupiers include Vue Cinema, Hollywood Bowl and Gym Group. The investment was acquired off a guide price in the region of 5%.
Newly opened in May 2018 with 77 rooms, Travelodge Dagenham is immediately being expanded to 82 bedrooms, by extension in to adjacent retail space on the ground floor.
January 2018
Premier Inn in foreground, Travelodge to rear and left
KINGSTON DUO ACQUISITIONS CONSULTANCY
DTZ Investors, fund manager of the National Grid UK Pension Scheme, has completed on the purchase of Combined and International House, Kingston upon Thames.
The asset includes two 10 storey buildings and a shopping mall comprising 144,200 sq ft of hotel and retail accommodation plus a 366-space multi-storey car park. The two hotels are let to Premier Inn and Travelodge, with retail units let to Argos, Poundland and Aldi. The car park is leased to NCP.
The acquisition provides the Fund with a well-diversified income stream, with c.55% of the income being derived from the two hotels, 35% from the retail units and 10% from the car park. Peter O’Gorman, Fund Manager at DTZ Investors commented, “This asset will deliver a sustainable income stream, whilst providing good growth potential at minimal risk”.
NJBHLP was instructed as a consultant by DTZ Investors, advising on the ‘Premier Inn London Kingston upon Thames’ and ‘Travelodge Kingston upon Thames Central’ elements.
Travelodge Gosforth
CORDATUS ACQUIRES GOSFORTH TRAVELODGE HOTEL IN £4.7M DEAL
LONDON, 25 January 2018 – Cordatus Property Trust (“CPT”) has acquired a 53-bedroom Travelodge Hotel in Gosforth, Newcastle upon Tyne as its latest addition to the fund in an off-market purchase. Cordatus purchased the hotel at Rotary Way, Gosforth, from Compass Estate Co (a private syndicate) paying £4,650,000. The price reflects a net initial yield of approximately 5.25%.
In line with its development of a balanced portfolio spanning freehold/leasehold assets and locations right across the UK, Cordatus has acquired the long leasehold on the Gosforth site which is let to Travelodge on a 25-year lease with RPI linked rent reviews, and trades as a successful hotel under the brand’s management.
Ereira Mendoza and NJB Hotels & Leisure Property acted for Cordatus. Heywood & Partners acted for the vendor.