Travelodge, Bolton Central River Street, Bolton, Lancashire - 25 year lease (without breaks) and uncapped RPI rent reviews.
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SAT NAV: BL2 1BX Travelodge, Bolton Central River Street, Bolton, Lancashire Enter 25 year lease (without breaks) and uncapped RPI rent reviews.
Investment Location Situation Description Tenancy Covenant Further Info Proposal
Investment Summary
• Bolton is a thriving metropolitan town forming part of the Greater Manchester conurbation and benefiting
from excellent communications being situated in close proximity to both the M61 and M60 motorways.
• The town has a primary catchment population of 529,000 people (Promis), with approximately 2,482,328 living
within 20 km of the centre.
• Prime and recently completed (Nov 2011) purpose built self-contained 80 bedroom hotel with restaurant
facilities at ground floor and an 83 space car park.
• Prominent and highly accessible town centre location just off the A666 (town centre junction), in close
proximity to the dominant shopping parks in the town.
• The property is let to Travelodge Hotels Limited (5A1), on a new 25 year unbroken full repairing and insuring
lease from 21st November 2011, at an initial passing rent of £264,800 per annum (£3,310 per room).
• The lease will be subject to five yearly upward only rent reviews linked to the Retail Price Index (RP02),
without cap.
• Long leasehold – 999 years at peppercorn.
• Capital Allowances can be made available to any qualifying purchaser. ( Estimated between £800,000 to
£1,000,000)
• Offers are sought in excess of £4,000,000 (Four Million Pounds) subject to contract and exclusive of VAT. A
purchase at this level reflects a 6.26% net initial yield, subject to contract and exclusive of VAT, based upon
purchaser’s costs at 5.8%
POST CODE:
BL2 1BX
Travel Lodge River Street, Bolton
Investment Location Situation Description Tenancy Covenant Further Info Proposal
Location Bolton’s economy was traditionally centred
on the cotton industry, although this has
Bolton is the second largest town in the UK and diversified into other manufacturing activities.
one of the ten Boroughs of Greater Manchester. Town The retailing, financial and business services
The town is strategically located approximately 17 Hall sectors are also important sources of
km (10 miles) north west of Manchester, 40 km (25 employment for Bolton.
miles) north east of Liverpool and 63 km (40 miles)
west of Leeds. Town More than two-thirds of the population of
Railway Centre Bolton work within the borough. The town is
Bolton also benefits from exceptionally good Station the sixth largest employment centre in the
communication links with the M6 and M61 entire North West and enjoys strong links with
motorways being to the West of the town and the Manchester.
M60 and M62 motorways lying immediately to the Currently bidding for city status, Bolton’s
South. economy was built on manufacturing,
predominantly cotton and textiles.
Manchester International Airport is within 25 Manufacturing remains the biggest employer
minutes motorway drive time and is Europe’s fastest in the town, accounting for 14 per cent of the
expanding airport. workforce and, within that sector, engineering
makes up for more than a third of all jobs.
Bolton Railway Station is situated on a spur line Examples of large employers include bread-
linking to Manchester (16 minutes) and Preston (22 maker Warburton’s, Stateside Foods and
minutes) and the national rail network beyond. Lostock-based MBDA Systems, which makes
Catchment and
missiles and missile systems, Watson Steel and
Leigh’s Paints.
Demographics
A666
The retailing, financial and business service
sectors are also important sources of
Bolton has a district population of 261,037 (Census employment for Bolton. Major employers in
2001) with an estimated total population within the the town include AXA, Royal Bank of Scotland,
Bolton primary catchment area of 529,000 people. A579 Keoghs Solicitors and E.ON.
(Source: PROMIS). The town is rated ‘above average’
for Sub Regional Centres, ranking the city 28th out To Manchester
of the PROMIS centres. Bolton’s catchment area
also draws people from smaller surrounding towns
such as Darwen to the north, Radcliffe to the east,
Boothstown to the south and Horwich to the west. click to view full aerial
Travel Lodge River Street, Bolton
Town
Hall
Town
Railway Centre
Station
A666
A579
To Manchester
close aerial
Investment Location Situation Description Tenancy Covenant Further Info Proposal
Situation
Travelodge Bolton is situated just half a mile south-east of the town centre fronting River Street and overlooking the A666 St Peters’ Way dual carriageway which is the main arterial route into
Bolton. The hotel is close to Bolton Railway station. The site is accessed directly off the A579 and is well positioned for the town’s connecting inner ring road.
The subject property is situated in the Merchants Quarter in close proximity to a number of major food stores including ASDA, Morrison’s, Tesco, and Sainsbury’s and is opposite Trinity Retail
Park.
Bolton Hotel Market
6
1. Travelodge Central (80 rooms)
2. Ramada Jarvis Middlebrook (91 rooms)
3. Whites DeVere (125 rooms)
4. Holiday Inn Bolton (132 rooms)
5. Brittania Hotel Bolton (124 rooms)
6. Travelodge Bolton West M61 (30 rooms)
7. Premier Inn Bolton West
7 4
3
1
2
5
Travel Lodge River Street, Bolton
Investment Location Situation Description Tenancy Covenant Further Info Proposal
Description
The property comprises a newly built 80 cladding and render. Internally the hotel is fitted
bedroom Travelodge hotel with ground floor out to Travelodge’s latest specification.
lobby, reception, kitchen, and staff areas with
Customer parking facilities will be provided on
bedrooms situated on the first to fifth floors.
site with 25 spaces (4 disabled spaces) plus an
The six storey hotel is constructed on ground additional 54 spaces in the adjacent car park.
to first floor in steel frame with one in situ
The car park is controlled by Travelodge and is
concrete transfer slab at first floor level. Above
open 24 hours.
is a five storey timber frame clad with brick and
block work elevations complimented by feature
Travel Lodge River Street, Bolton
Investment Location Situation Description Tenancy Covenant Further Info Proposal
Energy Performance Certificate
An Energy Performance certificate is attached. Click below to download
Download
Tenure
The property is held under a leasehold title for a term of 999 years with effect from
1st December 2010 at a peppercorn. In addition to the car parking available on site,
the lease grants rights in favour of the leaseholder, (and transferred to Travelodge),
to use adjoining land located immediately adjacent to the property for car parking
and highlighted blue on the title plan. This land is developed as a car park with direct
access to the hotel.
Further information is available on request
Tenancy
The property is let to Travelodge Hotels Limited on a full repairing and insuring lease
for a term of 25 years from 21st November 2011 expiring 20th November 2036. The
current passing rent of £264,800 per annum (£3,310 per room) is subject to 5 yearly
rent reviews linked to the All Items Retail Price Index (RP02), without cap.
Travel Lodge River Street, Bolton
Investment Location Situation Description Tenancy Covenant Further Info Proposal
Covenant Information
Travelodge was the first budget hotel brand to launch in the UK in 1985 and now Travelodge continued to grow in 2010 despite the recession, selling a record number
operates 390 hotels (over 26,000 rooms) in Ireland, Spain and the UK. Travelodge is of rooms, increasing turnover, opening more hotels (70) and improving operational
growing rapidly with plans to operate 70,000 rooms (approximately 1,000 hotels) by efficiencies. Tough trading conditions have had an effect although EBITDAR was up
2020. The chain employs 5,500 staff and is owned by Dubai International Capital, who 6% on 2009. Rent cover at 1.6x was below the company’s historical average, but at
acquired the organisation from Permira in 2006. the low point in the economic cycle, this is considered satisfactory, and will improve
as the hotel market recovers. The company’s strategy remains to grow profitability by
Thirteen million people stayed with Travelodge last year and 87% of reservations
increasing the supply of budget accommodation, improving efficiencies and reducing
are currently made online at travelodge.co.uk, where room prices start from £19 per
costs. Travelodge aims to take advantage of demand as it returns into a market that
night. In January 2009, Travelodge launched the UK hotel industry’s first retail-style
has seen much of the independent and smaller competition disappear.
price checking programme where it compares prices of all of the major UK hotel
chains to ensure that it remains the number one on price. Travelodge Hotels Limited is rated 5A1 by Dun & Bradstreet, representing a minimum
risk of failure. Travelodge Hotels Limited’s last three years audited accounts are as
follows:-
Date 31 Dec 2010 31 Dec 2009 31 Dec 2008
Sales Turnover £331,700,000 £294,400,000 £287,000,000
Profit / (Loss) £27,000,000 £66,500,000 £8,700,000
Tangible Net Worth £888,400,000 £861,400,000 £799,000,000
Net Current Assets £377,300,000 £334,600,000 £274,900,000
Travel Lodge River Street, Bolton
Investment Location Situation Description Tenancy Covenant Further Info Proposal
Investment Market
The hotel investment market has shown stability in pricing over the past three quarters. Since the
economic downturn the direct commercial investment market has witnessed improved investor
sentiment and increased activity. The weight of cash coupled with very limited opportunities to buy has
sustained pricing over the medium term which is a trend we predict will continue as the shortage of
prime investment stock continues.
All the key institutional investors (PRUPIM, Aviva, L&G, SWIP) have significant exposure to the
Travelodge covenant within their portfolios.
Recent Travelodge hotel transactions are scheduled in the attached file. Click the link to download.
Download
VAT
VAT will be payable on the purchase price. It is anticipated that the sale will be dealt with as a transfer
of a going concern.
Capital Allowances
A report on the Capital Allowances has been produced. It is estimated the value of the CA’s is in the
region of £800,000 - £1,000,000. Further information is available on request.
Travel Lodge River Street, Bolton
Investment Location Situation Description Tenancy Covenant Further Info Proposal
Proposal
Offers are sought in excess of £4,000,000
(Four Million Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a 6.26% net initial yield, subject to
contract and exclusive of VAT, based upon purchaser’s costs at 5.8%
Assuming annual RPI growth based on the long term average of 3.5%, a purchase at this level would provide the following very attractive returns over the term of the lease;
November 2016 - 7.44%
November 2021 - 8.83%
November 2026 - 10.49%
November 2031 - 12.45%
Contact
To arrange an inspection or discuss the opportunity
in further detail please contact:
Christopher Dee
40 Peter Street
Manchester
M2 5GP
Chris Jones
Tel: 07957 138003
Email: cj@christopherdee.co.uk
Mark Powell
Tel: 07825 077724
Email: mp@christopherdee.co.uk interactive pdf
MISREP: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained here in is not guaranteed
and is for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their
accuracy. Christopher Dee nor any of its employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in
relation to the property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property
Travel Lodge River Street, Bolton
shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable or fulfilling its intended function. Prospective tenants/purchasers should
satisfy themselves as to the fitness of such equipment for their requirements. Designed and Produced by 90 Degrees Design & Marketing 0161 833 1890. December 2011.You can also read
