Travelodge, 21/23 Justice Mill Lane, Aberdeen, AB11 6AQ

Summary

Secure Long Term Hotel Investment in Aberdeen

Investment Summary

• Aberdeen is a city known for its prowess in the energy industry and therefore has a truly international population.
• Aberdeen enjoys a strong demand base for hotels from a mix of business and leisure customers. Located in the heart of the city centre, the property is ideally situated to take advantage of city centre attractions and transport links.
• 128-bedroom hotel built for Travelodge in November 2010, with a large reception, restaurant and onsite parking.
• Let to Travelodge Hotels Ltd (D&B 5A1) for a remaining term of 21.2 years (inclusive of the landlord’s option to extend).
• Upward only rent reviews every 5 years linked to uncapped RPI, the next in November 2020.
• Current passing rent of £589,947 per annum, and forecast to rise to £683,141 per annum in November 2020*. The current passing rent reflects a room rate of £4,609 pa, and forecast to rise to £5,337 in November 2020.
• Heritable interest (Scottish Equivalent of English Freehold).

We are seeking off ers 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 5.85%, rising to 6.77% in November 2020, allowing for purchaser’s costs of 6.20%.

*Forecast rent rise based on RPI index to date, followed by ONS RPI forecast until November 2020.

Associated Sales: The property is available to purchase in isolation or as part of a three property portfolio including Premier Inn, Huntly Street, Inverness and Travelodge, Braehead, Glasgow.