Travelodge Hotel - LONG LET HOTEL INVESTMENT WITH UNCAPPED CPI RENT REVIEWS - Seasiders Way Blackpool FY1 6JJ - Fastly
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Travelodge Hotel
Seasiders Way ▪ Blackpool ▪ FY1 6JJ
LONG LET HOTEL INVESTMENT WITH UNCAPPED CPI RENT REVIEWS
Description,
Travelodge Hotel Investment Location &
Location Plan
Tenancy,
Tenure &
Hotel
Investment
Proposal &
Contacts
Summary Situation Covenant Market
Seasiders Way ▪ Blackpool ▪ FY1 6JJ Information
Investment Summary
• Freehold hotel investment with long index linked income.
• Blackpool remains one of the UK‟s most popular tourist
destinations, attracting circa 18m visitors in 2016.
• Excellent location in the South Shore area of Blackpool
between Blackpool Pleasure Beach and the Town
Centre. It is close to the sea front, promenade and
immediately opposite Blackpool Football Club.
• Comprises a purpose built 124 bedroom hotel with
conference and bar facilities and 139 car parking
spaces.
• Let to Travelodge Hotels Limited (D&B rating 5A1) with
14 years unexpired subject to 5 yearly uncapped CPI
rent reviews. There is an additional turnover element to
the rent review.
• Rent passing of £568,420 per annum reflecting a low
rate of £4,584 per room.
• Opportunity to re-gear the current lease with
Travelodge.
We are instructed to seek offers in excess of £9,680,000
(Nine Million, Six Hundred and Eighty Thousand
Pounds), subject to contract and exclusive of VAT. A
purchase at this level reflects a net initial yield of 5.50%
after allowing for usual acquisition costs of 6.69%.
Description,
Travelodge Hotel Investment Location &
Location Plan
Tenancy,
Tenure &
Hotel
Investment
Proposal &
Contacts
Summary Situation Covenant Market
Seasiders Way ▪ Blackpool ▪ FY1 6JJ Information
Location
Blackpool is a popular seaside resort in Lancashire,
located approximately 15 miles west of Preston, 25 miles
south west of Lancaster, 43 miles north west of
Manchester and 54 miles north of Liverpool.
The town benefits from excellent road communications.
Junction 4 of the M55 motorway is located approximately
4.4 miles south east of the town centre and in turn leads
onto the M6 motorway, providing access to the national
motorway network. The A583 connects the town with
Preston, with a journey time of approximately 27 minutes.
Blackpool is well served by public transport and the town
benefits from 3 railway stations. Blackpool North is the
primary station located within the town centre. Virgin
Trains have a high speed service direct to London Euston
that operates 4 times daily from Blackpool North. The
station also provides direct services to Liverpool Lime
Street and Manchester Airport, as well as further services
across the North. Blackpool South and Blackpool Pleasure
Beach Train Station are interconnected and provide direct Situation
services to Preston.
As well as excellent rail communications, the town benefits The subject property is situated in an excellent position fronting Blackpool Football Ground. The property
from frequent bus services to other popular tourist is bound by Bloomfield Road, Seasiders Way, Seymour Road and Blackpool Gateway Academy to the
destinations, such as Fleetwood, Knott end and Lytham. rear.
The tram operates along The Golden Mile, the promenade
stretch in between the North and South Piers. Seasiders Way leads on to the A5073, the main route into the town, providing access to the M55
motorway.
Manchester International Airport and Liverpool John
The property benefits from an extensive range of local amenities and is minutes away from the sea front.
Lennon Airport can both be accessed by car in 1 hour.
Blackpool South train station is approximately 0.4 miles south of the subject property and can be reached
in 8 minutes by foot.
Description,
Travelodge Hotel Investment Location &
Location Plan
Tenancy,
Tenure &
Hotel
Investment
Proposal &
Contacts
Summary Situation Covenant Market
Seasiders Way ▪ Blackpool ▪ FY1 6JJ Information
Blackpool Highlights
Sandcastle Waterpark
Madame Tussauds Blackpool Council have proposed a £300
Blackpool’s £300m Opera House & Winter Gardens
million leisure development, Chariots Of The
Gods, that will create 1,000 new jobs.
masterplan estimates
Tourist Attractions In partnership with developer Nikal, the
that it will attract an scheme plans to develop the under utilised
Sea Life Include 17 acre car parking site along the Golden
additional 600,000 Blackpool Zoo Mile into a high quality world-class visitor
The Blackpool Tower attraction. Landmark attractions will include
visitors each year Fleetwood Market the UK‟s first „flying theatre‟, a virtual reality
Blackpool Pleasure Beach entertainment zone, an indoor family
entertainment centre and a multimedia
exhibition space.
Furthermore, the scheme will comprise
various restaurant and leisure units
including a food hall, a 1,000-space multi-
Overall number of storey car park, 2 new hotels providing a
Blackpool’s visitor tourism visits grew to
total of approximately 400 beds and
improved public realm.
economy is currently 18 million in 2016, up Chariot Of The Gods (COTG) highlights the
valued at £1.5bn 6% from the previous
potential of the towns growth. This,
partnered with the willingness of the local
authority, shows the scope of both public
year and private investment for Blackpool.
Description,
Travelodge Hotel Investment Location &
Location Plan
Tenancy,
Tenure &
Hotel
Investment
Proposal &
Contacts
Summary Situation Covenant Market
Seasiders Way ▪ Blackpool ▪ FY1 6JJ Information
Location Plan
Winter Gardens
Travelodge
ODEON
Blackpool South
Train Station
North
Pier
Blackpool
Town Centre
COTG
Site
Sandcastle
Waterpark
Blackpool North
Railway Station
South
Sea Life Pier
The Blackpool The Golden
Tower Mile
Blackpool
Central Pleasure Beach
Blackpool
Pier
Football Club
Travelodge Hotel Investment Location &
Location Plan
Description,
Tenancy,
Hotel
Investment
Proposal &
Contacts
Summary Situation Tenure &
Market
Seasiders Way ▪ Blackpool ▪ FY1 6JJ Covenant
Information
Description Covenant Information
The property comprises a modern 124 bedroom hotel Travelodge Hotels Limited (Company Number
extending over ground and five upper floors. 00769170) is a hotels and hospitality operator with
properties predominantly across the UK, as well as
There are conference facilities and an open plan 88 Ireland and Spain.
cover café and bar. Externally there is car parking for
139 vehicles. Travelodge is the UK‟s second largest hotel brand and
has been established since 1985. The company
operate 558 hotels and 42,110 rooms. The company
EPC attracts 18 million customers annually and employs
10,000 people.
Energy Performance Certificates are available upon Travelodge Hotels Limited has a D&B Rating of 5A1
request. representing a minimum risk of business failure.
Tenancy
31/12/2017 31/12/2016 31/12/2015
The property is let to Travelodge Hotels Limited on a 25
year FRI lease from 1st April 2008 and expiring on 20th
April 2033 (14 years unexpired). Turnover £624.0m £587.7m £552.1m
The lease is subject to 5 yearly CPI rent reviews. In Pre-tax profit £45.2m £46.8m (£545.3m)
addition there is a turnover element (more details can
be provided upon request).
Net worth £316.1m £271.6m £224.6m
The passing rent is £568,420 per annum (2018 review)
reflecting a low rate of £4,584 per room.
There is the opportunity to re-gear the lease with the
current tenant.
Description,
Travelodge Hotel Investment Location &
Location Plan
Tenancy,
Tenure &
Hotel
Investment
Proposal &
Contacts
Summary Situation Covenant Market
Seasiders Way ▪ Blackpool ▪ FY1 6JJ Information
Travelodge Investment Deals
Date Property Price Yield Rooms Unexpired Term
On Market Balmoral Road, Blackpool £8,175,000 4.75% 79 20.00
Oct-18 Scarborough £14,000,000 5.88% 140 24.60
Aug-18 Cockermouth £2,900,000 5.59% 43 14.00
Jun-18 Swansea £5,500,000 5.00% 70 20.00
May-18 Aberdeen £9,500,000 5.85% 128 21.10
Jan-18 Gosforth, Newcastle £4,650,000 5.25% 53 20.00
Jan-18 Burham on Sea £5,800,000 5.76% 75 25.00
Description,
Travelodge Hotel Investment Location &
Location Plan
Tenancy,
Tenure &
Hotel
Investment
Proposal &
Contacts
Summary Situation Covenant Market
Seasiders Way ▪ Blackpool ▪ FY1 6JJ Information
VAT Proposal Contacts
The property is elected for VAT. For further information or to arrange a site
We are instructed to seek offers in inspection, please contact the following:
excess of £9,680,000 (Nine Million,
Tenure Six Hundred and Eighty Thousand Ben Roberts Hugh Anderson
Pounds), subject to contract and E: broberts@lsh.co.uk E: handerson@lsh.co.uk
exclusive of VAT. T: 0161 242 8002 T: 0161 242 7098
The property is held freehold under title LA970166.
A purchase at this level reflects a net Scott Gemmell Lawrence Vaughan
initial yield of 5.50% after allowing for E: sgemmell@lsh.co.uk E: lvaughan@lsh.co.uk
usual acquisition costs of 6.69% T: 0161 242 8001 T: 0161 242 7077
Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents
if any (“LSH”) for themselves and for the seller or landlord of the property whose agents they
are give notice that: (i) These particulars are given and any statement about the property is
made without responsibility on the part of LSH or the seller or landlord and do not constitute
the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area
given or any reference made to condition, working order or availability of services or facilities,
fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval
or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial
or investment information or tenancy and title details or any other information set out in these
particulars or otherwise provided shall not be relied on as statements or representations of
fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or
otherwise as to the accuracy of all information or suitability of the property. (iii) No employee
of LSH has any authority to make or give any representation or warranty arising from these
particulars or otherwise or enter into any contract whatsoever in relation to the property in
respect of any prospective purchase or letting including in respect of any re-sale potential or
value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant
must satisfy themselves concerning the correct VAT position. (v) Except in respect of death
or personal injury caused by the negligence of LSH or its employees or agents, LSH will not
be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of
these particulars or any information provided in respect of the property save to the extent that
any statement or information has been made or given fraudulently by LSH. (vi) In the case of
new development or refurbishment prospective buyers or tenants should not rely on any
artists‟ impressions or architects‟ drawings or specification or scope of works or amenities,
infrastructure or services or information concerning views, character or appearance and
timing concerning availability or occupation and prospective buyers or tenants must take
legal advice to ensure that any expectations they may have are provided for direct with the
seller or landlord and LSH shall have no liability whatsoever concerning any variation or
discrepancy in connection with such matters.
April 2019. LSH Manchester.
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