Knight Frank Investment Management has bought a Travelodge in Hereford.
A client of Knight Frank Investment Management has purchased the 52-bedroom hotel for £2.7m – a 6.5% yield – from fixed charge receivers.
It is the fourth Travelodge investment sale this year. RO Developments purchased the 64-bed Taunton Travelodge for £2.6m – a 6.6% yield; Scottish Widows Investment Partnership purchased the Brighton Seafront Travelodge for £15.2m – a 6.3% yield; and CRT Property Investments, a wholly owned subsidiary of the Coalfields Regeneration Trust, paid £2.3m for the Huddersfield Travelodge, representing a 7.1% yield.
John Styles, head of fund management at Knight Frank Investment Management, said: “The investment provides a secure long-term income stream with rental increases pegged to inflation, which meets our client’s objective of providing income and capital preservation in real terms in the long run.
“We are confident that the new financial structure of Travelodge provides a secure platform for the business going forward, and the rental income is supported by the trading performance of this hotel.”
Tony O’Brien, UK development director for Travelodge Hotels, added: “Investors have recognised the great progress that we have been making on the £80m refit of our estate and the revitalisation of our whole business, and investment yields for Travelodge investments have therefore been moving in steadily in the past few months.
“With our experiencing strong trading growth, I expect yields to continue to harden further in the next six months.”
annabel.dixon@estatesgazette.com
