Rare Long Let Hotel Investment in the Centre of York
In September 2019 Joiner Cummings acted on the sale of Travelodge in York on behalf of an institutional fund.
- The property is centrally located in York: within 10 minutes’ walk of the railway station and all the main visitor attractions in York.
- High quality building and purpose designed hotel with generous provision of amenity accommodation and ample proportions for the reception, restaurant, bar, meeting and storage rooms. There are a total
of 104 bedrooms over 3 upper floors.
- The hotel is let to Travelodge Hotels Ltd with over 29 years unexpired.
- Travelodge have recently refurbished the hotel and rebranded as a Travelodge Plus, one of only seven in the UK.
- The rent is reviewed every 5 years, upwards only, in line with uncapped RPI. The next rent review is March 2020.
- Travelodge are paying a current rental of £700,914 per annum, which reflects £6,740 pa per key. In line with RPI since the last review in 2015, the underlying rental has risen to £790,930 per annum, reflecting
£7,605 pa per key.
- The investment includes a ground floor restaurant and retail unit in an established and prominent pitch. Both units are let with an average unexpired term of 5.25 years (2.4 years to break) and a total passing
rent of £110,000 per annum (12.2% of the total income).
- The average unexpired lease term weighted to income is 25.9 years to expiry (25.5 years to break).