The net initial yield achieved reflects 6.375% with the income secured for nearly 20 years to Travelodge Hotels Limited off an affordable rent of £4,140 per key, the lease being subject to five-yearly reviews to RPI, the next being in 2027. The Travelodge is a purpose built, 64 bedroom hotel with a larger than typical room size and a recently improved EPC B rating.
WHAT WAS OUR APPROACH?
RO Real Estate is a BNPPRE valuation client. The property was identified as having met RO’s business plan and BNPPRE was asked to provide a disposal recommendation, primarily pricing and timing. We urged early marketing into a market starved of good quality stock and having highlighted that the property is ‘all electric’ recommended that the EPC was renewed which crucially resulted in an improved EPC rating of B. The property was promoted to the private investor market through a wide marketing exercise culminating in competing investor interest.
