Gravesham Borough Council has agreed to take a 50-year lease on a yet-to-be-built Travelodge hotel in Greenwich from the Universities Superannuation Scheme for a total of £102.5m.
The hotel, which will be located at 1 Dreadsnought Street, SE10, will be sublet by the council to Travelodge, which already has an agreement with the Universities Superannuation Scheme to operate it.
The council has the option to acquire the freehold of the site from the Universities Superannuation Scheme for a nominal sum at the end of the lease term.
Travelodge recently agreed CVA plans with its current landlords. Although the plans do not include the permanent closure of any of its 564 hotels, landlords will only receive 62% of rent due until the end of 2021.
In exchange, 94% of its leases are to be cut by up to 50% to the end of 2021. No rent would be paid on 6% of its portfolio during the period.
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