Travelodge, 150, Kings Inch Road, Braehead, Glasgow, PA4 8ZL

Summary

Secure Long Term Hotel Investment in Glasgow

Investment Summary

• Glasgow is the largest city in Scotland and one of the UK’s major retailing and conference/ events destinations.
• Glasgow has a broad, sustainable demand base for hotels, with a healthy mix of business and leisure demand.
• 99-bedroom hotel built for Travelodge in August 2008, with a large reception, café and 101 secure parking spaces.
• Let to Travelodge Hotels Ltd (D&B 5A1) for a remaining term of 21.2 years (inclusive of landlord’s option to extend).
• Upward only rent reviews every 5 years linked to uncapped RPI, the next in August 2018.
• Current passing rent of £395,889 per annum, which is forecast to rise to £449,494 per annum in August this year*.
• The current passing rent reflects a room rate of £3,999 and forecast to rise to £4,540 in August 2018.
• Heritable interest (Scottish Equivalent of English Freehold).

We are seeking offers in excess of £7,000,000 (Seven Million Pounds Sterling), exclusive of VAT, for our client’s heritable interest in the property. This reflects a net initial yield of 5.33%, rising to 6.05% in August 2018, allowing for purchaser’s costs of 6.16%.

* Forecast rent rise based on RPI index to date, with RPI currently running at 4.1% pa.

Associated Sales: The property is available to purchase in isolation or as part of a three property portfolio including Premier Inn, Huntly Street and Travelodge, Justice Mill Lane, Aberdeen.