SNARESBROOK TRAVELODGE - 73 HOLLYBUSH HILL, LONDON, E11 1PE - Allsop
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TRAVELODGE
SNARESBROOK
73 HOLLYBUSH HILL, LONDON, E11 1PE
LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP
SNARESBROOK
TRAVELODGE, 73 HOLLYBUSH HILL, LONDON, E11 1PE
INVESTMENT CONSIDERATIONS PROPOSAL
■ Attractive purpose-built hotel ■ 5 yearly uncapped RPI linked reviews Offers sought in excess of £2,100,000 (Two Million and One Hundred Thousand Pounds)
providing 24 rooms totalling subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield
■ Excellent potential to provide an alternative
7,303 sq ft (GIA) of 6.00% assuming standard purchaser’s costs and a low capital rate of only £288 psf.
residential focused use, subject to necessary
■ 4min walk from Snaresbrook consents Yield profile assumes 2.5% uplifts per annum
Underground Station, providing
Central Line services ■ Residential studio rents in the area achieving £700 Review Date Running Yield
pcm (£8,400 p.a.) which potentially could provide
■ 1.3 miles from Junction 4 of the M11 a total income for the property of £201,600 per 2025 6.79%
Motorway annum assuming they were let on this basis 2030 7.68%
■ Let to Travelodge Hotels Ltd on ■ Residential sales are achieving £550 psf 2035 8.69%
an FRI lease expiring on 16/07/2038 in the area
(no breaks)
■ Unexpired term of 17.7 years
■ Long Leasehold. 225 years from 10/08/2010, DATAROOM
providing an unexpired term of 215 years at For access to the Allsop Marketing Data Room, please use the following link:
■ Passing rent of £134,151 per annum a ground rent of £10 per annum. https://datarooms.allsop.co.uk/register/travelsnaresbrook
LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP
A505 Stevenage
Dunstable Stansted
Luton
A418 LUTON
A5 A10
A1(M) A602
A44 M1
A34 Aylesbury
SNARESBROOK Harpenden
TRAVELODGE, 73 HOLLYBUSH HILL, LONDON, E11 1PE Hertford
A40
A414 M11
A41 Hemel Harlow
OXFORD Hatfield
Hempstead St Albans
A4142 Thame
M10 Ch
A414
A420 J21 A414
A404 Chesham Epping Chipping
A4010 J20
J23 Ongar
J25
J19 M25 J27
High Borehamwood
M25 Watford A1 Enfield
Wycombe A355 M11
M1
Beaconsfield A10 Woodford
A413 Harefield Green J28
M40
A404 J2
SNARESBROOK
A12 A12
Marlow Ruislip J29
Hampstead Romford
LONDON
J16 Wembley
Hurley Maidenhead Uxbridge A40
A34
SLOUGH A13 M25
A404(M) Southall London
Eton J15
M4 City
Windsor Hounslow A2
READING Heathrow Clapham
M4 Dartford
A329(M) Ashford G
Egham Kingston
Bracknall A20 J2
Upon Thames
LOCATION Ascot J12 A23
Bromley
M3 J3
A322
Snaresbrook is an attractive and affluent area of Wanstead The surrounding area isWalton-on-Thames
one of the most highly sought after living environments
Croydon in London with a large number
of parks and open spaces. A232 A21
in the London Borough of Redbridge. The town is Sutton M25 M20
Sandhurst M25
strategically located just inside the North Circular, 8 miles Epsom links being situated between the A12 and A10 which
Snaresbrook benefits from excellent road communication
provide direct access on to the
J10 M11 Motorway and A406 North Circular. Snaresbrook Underground station is
east of Charing Cross. Woking A217
Biggin
situated on the Central Line and provides direct access to Liverpool Street Station Hill
and the
A339 A22
West End of London. All of London’s airports are easily reached via the M11 and M25 London Orbital.
J9 J5 M26
M3
BASINGSTOKE Fleet M25
A331 A3
J8 J7 J6
A34 Oxted
Aldershot Reigate A2
GUILDFORD Dorking Redhill
Famham A21
A24
M23 Tonbridg
A303 Godalming
ROAD RAIL Horley AIR Pa
Royal W
A12 0.7 miles Gatwick London City Tunbridge
10.0 miles
Alton Witley Bank Station 20 minutes
Cranleigh Wells
A10 4.8 miles Oxford Circus 29 minutes Stansted Airport 26.1 miles
A31 Crawley
M11 1.5 miles City Thameslink 29 minutes Heathrow Airport
Three Bridges 27.8 miles
M25 12 miles St Pancras International A264
30 minutes Luton Airport 39.5 miles
Horsham
LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP
A23 Haywards
SNARESBROOK
13
LL A1
TRAVELODGE, 73 HOLLYBUSH HILL, LONDON, E11 1PE
O N HI
WANSTEAD
HE R M
W O ODFORD ROAD A1199
HOSPITAL
SNARESBROOK ROA D
EAGLE POND
4
M
IN
S
TO
ST
A
T
HI ION
G
H
SNARESBROOK ST
RE
CROWN COURT ET
SNARESBROOK
UNDERGROUND
STATION
13
A1
NE
EAGLE LA
AD
TE
NS
WA
NE W
WOODFORD ROAD
SNARESBOOK ROAD
SITUATION DESCRIPTION
The property benefits from good road frontage to the The property is arranged over ground and first floors
A1199 and is a short walk from Snaresbrook Underground providing a total of 24 en suite bedrooms. The hotel benefits
Station and High Street. The property is situated from shared car parking with the adjoining public house.
adjacent to Toby Carvery opposite Leyton Flats.
Occupiers on the High Street include Tesco, Co-Op and TENURE
Nationwide as well as numerous boutique shops, cafés Leasehold. 225 years from 10/08/2010, providing
and restaurants with an attractive village green. an unexpired term of 215 years at £10 per annum.
© Crown Copyright, ES 100004106. For identification purposes only.
ACCOMMODATION & TENANCY SCHEDULE
Tenant Floor Area GIA Lease Start Lease Expiry Rent Review Passing Rent £ pa
(sq ft)
Travelodge Hotels Limited Ground 3,697 10/08/2010 16/07/2038 (17.7 years remaining) 10/08/2025 £134,151 (£5,589 per room)
First 3,606
Total 7,303 £134,151
Subject Property Demise –––––––
Mitchells & Butlers Demise (excluded from sale) ––––––––
LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP
SNARESBROOK
TRAVELODGE, 73 HOLLYBUSH HILL, LONDON, E11 1PE
COVENANT KEY STATISTICS (FY 2019)
588 44,832 80.6%
Hotels Rooms Occupancy
KEY HIGHLIGHTS
Travelodge Hotels Limited
• UK’s second largest hotel brand based on
number of hotels and rooms
• Positioned in the attractive value segment
£51.82 £41.75 £727.9m
with 588 hotels and serving 19m business ADR RevPAR Revenue
and leisure customers
• Well invested modernised hotel portfolio
• Well balanced approximately even
business / leisure customer split
• Almost 90% booking direct, with c. 80%
£337.8m £129.1m
£129.1m 1.6x
through own websites EBITDAR EBITDA Rent Cover
EBITDA
• Low upfront capex leasehold model
2020 TRAVELODGE CVA TRAVELODGE UK HOTEL DISTRIBUTION (AS OF MARCH 2020)
On 19/06/2020, Travelodge creditors voted to
approve a Company Voluntary Arrangement (CVA)
UNITED KINGDOM INTERNATIONAL
to restructure leases, to enable Travelodge to
navigate the short-term challenges faced as a
London Regions Spain Ireland
business as a result of the COVID-19 situation. • 76 hotels • 498 hotels • 5 hotels • 11 hotels
06/11/2020 Travelodge has confirmed that its share- • 9,802 rooms • 33,756 rooms • 621 rooms • 858 rooms
holders will go ahead with the £30m equity contribution. • 22% of total rooms • 75% of total rooms • 1% of total rooms • 2% of total rooms
LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STPSNARESBROOK
TRAVELODGE, 73 HOLLYBUSH HILL, LONDON, E11 1PE
FLOORPLANS
GF
FF
Subject Property Demise ––––––––
LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STPA505 Stevenage
Dunstable Stansted
Luton A120
A418 LUTON
A5 A10
A602
A44 M1 A131
A34 Aylesbury SNARESBROOK
Harpenden
A130
TRAVELODGE, 73 HOLLYBUSH HILL, LONDON, E11 1PE Hertford
A40
A414
A41 Harlow A12
OXFORD
A4142 Thame
M10 Chelmsford
A1(M)
A420 J21 M11 A414
Chesham A10 Epping Chipping
A4010 A404 J20
J23 Ongar
J25
J19 M25 J27
Borehamwood
M25 Watford A1
A355
M1 A130
Beaconsfield WOODFORD GREEN A12 Billericay
£480 PSF
A413 Harefield J28
M40 SNARESBROOK
A404 J2
£550 PSF A127
Marlow Ruislip WANSTEAD J29 Basildon
J16 Hampstead £500 PSF
LONDON
Wembley
Hurley Uxbridge A40
A34
Slough Canv
A13 M25
Southall London Island
Eton J15
M4 City
Windsor Hounslow A2
READING Heathrow Clapham
M4 Dartford
A329(M) Ashford Gravesend
Egham Kingston J2
A20
Upon Thames
J12 A23 *Psf rates based of an average flat size of 700 sq ft.
M3 J3 Gillingha
A322 Rochester
Walton-on-Thames Croydon
A232 A21
FUTURE DEVELOPMENT SNARESBROOK RESIDENTIAL RESIDENTIAL SALES MARKET M25 M20
M2
M25 Sutton
POTENTIAL MARKET OVERVIEW
Sandhurst Epsom
There is currently no new build stock available in Snaresbrook due to restricted development supply. Snodland
J10
Strong residual value with excellent future Woking
Redbridge Local Authority has consistently A217
A339 Biggin Hill
redevelopment potential. under-delivered against its housing targets Average A22House price growth Average price growth
J9 J5 M26 M20
M32007/08. Flat Price over last five years 5-year forecast
Snaresbrook is a popular Greater London since
BASINGSTOKE
urban conurbation bounded by several
Fleet A331
The current target is 1,123 homes per A3 £385,000M25
(£550 psf)
J8 J7
41%
J6
17% Maidstone
A34
large green spaces including Leyton Flats, annum with a limited current supply of Oxted
Aldershot Reigate A26
Wanstead Park and Gilbert’s Slade. development sites. GUILDFORD Dorking Redhill
The property comprises a purpose built The Local Planning
Famham Authority has A21
hotel investment within an established implemented a strategy of proactive RESIDENTIAL
A24 LETTING MARKET
M23
EXISTING RENTAL ASSETS ON THE
Tonbridge
A303 area directly neighbouring Godalming MARKET ARE COMMANDING RENTAL
residential engagement with developers and Horley Paddock
LEVELS IN THE REGION OF:
The residential letting market in Snaresbrook is strong at present Royal
a Toby Carvery. landowners. Wood Staplehurst
with 1 bedroom studio flats renting for £8,400 per annum. The
Gatwick Tunbridge
Given the nature of the construction and
Alton 4th highest projected percentage
Witley existing accommodation which provides 24 rooms could relatively
Cranleigh Wells
already highly efficient internal layout, the increase in population, amongst easily be converted to 24 studio apartments subject to obtaining A229
A31 Crawley Studios One Beds
property would lend itself to alternative English Local Authorities. the necessary consents. 24 studio apartments Three Bridges
could potentially £700 pcm £950 pcm
uses, including residential, subject to the Ambitious plans are underway to redevelop A264 per annum.
provide a total rent of £201,600
Two Beds
necessary consents. Redbridge’s main town and administrative We are also aware of a number of local authorities and social £1,950 pcm
centre; Ilford, driven by the arrival of three Horsham
housing providers who would also consider renting the entire
new Elizabeth Line stations. property in order to fulfill their social housing needs.
A23 Haywards
Heath
LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STPEPC
The property has an EPC rating of C(52).
VAT
The property is elected for VAT and it is anticipated that the transaction
will be treated as transfer of a going concern (TOGC).
ANTI-MONEY-LAUNDERING
A successful bidder will be required to provide information to satisfy the AML
requirements when Head of Terms are agreed.
DATAROOM
For access to the Allsop Marketing Data Room please use the following link:
https://datarooms.allsop.co.uk/register/travelsnaresbrook
PROPOSAL
Offers sought in excess of £2,100,000 (Two Million and One Hundred
Thousand Pounds) subject to contract and exclusive of VAT. A purchase
at this level reflects a Net Initial Yield of 6.00% assuming standard
purchaser’s costs and a low capital rate of only £288 psf.
Yield profile assumes 2.5% uplifts per annum
Review Date Running Yield
2025 6.79%
2030 7.68%
2035 8.69%
For further information or to make arrangements for viewing please contact:
National Investment
Lottie Hayward Andrew Wise
07817 549 237 07535 045 149
lottie.hayward@allsop.co.uk andrew.wise@allsop.co.uk
allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars
as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to
the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant.
2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order;
(d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 11.20You can also read
