LaSalle Investment Management, the global real estate investment manager, has bought a Travelodge hotel adjacent to Euston station.
The 150-room budget hotel in Grafton Place, NW1, was acquired from a syndicate of private investors for £40m.
The 40,000 sq ft site is let to Travelodge until 2043 on an inflation-linked rent.
London Euston is the terminus of the planned HS2 high-speed rail connection to the West Midlands, as well as a potential future site for Crossrail 2.
The branded budget sector is one of the fastest growing hotel markets in the UK, boosted by the weaker pound since the Brexit referendum, which has made it cheaper for international tourists to visit the UK.
Sophie Simmonds, fund manager at LaSalle Investment Management, said: “There are a number of very strong medium- and long-term drivers that contribute to the asset’s attractive return profile over the remaining lease term.
“These include the devaluation of sterling, encouraging both foreign visitors and permanent residents to holiday in the UK, London’s established position as one of the world’s leading hotel markets, and the major redevelopment of Euston planned over the coming decade.”
To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette
