BMO Real Estate Partners has bought two newly developed Travelodge hotels for £20m, amounting to a 5% yield.
The hotels, a 63-bedroom property in Witney in the Cotswolds, and a 90-bedroom hotel in Emersons Green in Bristol, have been bought from Hinton Group. Travelodge has signed 25-year leases on the properties, which also feature Costa Coffee drive-thrus, both let on 15-year terms.
Matthew Howard, director of property funds at BMO Real Estate Partners, said: “These well-located, limited service hotels also provide us with an opportunity to increase our client’s exposure to alternative assets, in a sector where we have strong conviction beyond the short-term disruption caused by the Covid-19 pandemic.”
BMO Real Estate Partners was advised by Gerald Eve and Cushman & Wakefield on the Witney acquisition, and Savills on the Emersons Green acquisition.
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