LaSalle Investment Management has acquired the long leasehold interest in Travelodge Bath Waterside from Lloyds Banking Group for £11.2 million following a limited marketing campaign to selected parties.
The transaction shows a net initial yield of 9.0 per cent with the property held on a ground lease having 123 years unexpired and let to Travelodge for a further 34 years with RPI rent reviews.
The 125 bed hotel on Rossiter Road in central Bath was acquired from Menzies Hotels by Travelodge in June 2008 and lies within 100m of Bath Spa railway station.
Tom Rose, Fund Manager at LaSalle, commented: “We are delighted with this acquisition and are pleased to be adding a Travelodge to our portfolio in such a strong city and location.”
Tony O’Brien, UK Development Director at Travelodge, added: “Even allowing for the unusual leasehold nature of the ground lease all credit to LaSalle for securing this deal on exceptional terms in one of the UK’s strongest tourist destinations. This is the fifth Travelodge investment that LaSalle has bought and we are delighted to enjoy the continuing support of one of the UK’s foremost investment fund managers and look forward to continuing our excellent working relationship with them.”
Richard Walsh, Director, National Investment at Colliers International, who advised LaSalle, said: “Bath will always thrive in this sector due to planning constraints, lack of hotel rooms in the city and high occupational demand. This type of opportunity is extremely difficult to source in any market or sector.”
