David Hargreaves of FHP, acting on behalf of local investor clients, has acquired the Travelodge Hotel on Pride Park in Derby.
The hotel, which comprises 84 bedrooms with 87 parking spaces with a passing rent of £307,750 pa, is leased to Travelodge Hotels Ltd with a further 21 years left to run on the lease.
The price paid was £4,825,000 equating to a yield of 6.00% or £57,440 per room before costs.
Hargreaves said: “This hotel, close to the Derby County football stadium and the nearby Events Arena, is a well-known national brand which trades well off affordable room rates.
“The investment offered our client a secure long term income stream of 21 years, with the Landlords having the right to ask Travelodge to take a further lease for 8 years when the current lease expires in 2044.
“Furthermore the rent, which equates to £3,655/bedroom, is index-linked to the Retail Price Index without a cap which should guarantee good rental and capital growth over the coming years.”
Knight Frank acted for the vendor, whilst Russell Thompson of Massers Solicitors provided the legal advice to complement the FHP property advice.
