Premier Inn, 19-21 Huntly Street, Inverness, IV3 5PR

Summary

Secure Long Term Investment In Inverness

Investment Summary

• Inverness is the capital of the Highland’s and the UK’s most northerly city;
• Inverness has a broad, sustainable demand base for hotels, with a healthy mix of tourism, business and leisure demand;
• The hotel is located in the heart of the city, overlooking the River Ness;
• 100-bedroom hotel, purpose built for Premier Inn, with a large reception, restaurant and parking facilities;
• Let to Premier Inn Hotels Ltd (D&B 5A1) until 29th January 2037 with a break option in January 2027 providing an unexpired term of 18.9 years (8.9 years to break);
• Upward only rent reviews every 5 years linked to RPI with a cap and collar of 2-5%, the next in January 2022;
• Current passing rent of £608,059 per annum with minimum uplift to £671,347 in 2022;
• The current passing rent reflects a room rate of £6,081 and forecast to rise to £6,713 in January 2022;
• Heritable interest (Scottish Equivalent of English Freehold).

We are seeking offers in excess of £9,500,000 (Nine Million Five Hundred Thousand Pounds Sterling), exclusive of VAT, for our client’s heritable interest in the property. This reflects a net initial yield of 6.03%, rising to a minimum of 6.66% in January 2022, allowing for purchaser’s costs of 6.20%.

The property is available to purchase in isolation or as part of a three property portfolio including Travelodge, Braehead, Glasgow and Travelodge, Justice Mill Lane, Aberdeen.