CBRE Global Investors has acquired, on behalf of an institutional client, 10-41 Kings Cross Road, London, a hotel let to Travelodge, for in excess of £20,000,000 (approx. €23.6 million) representing a yield of sub 5.5% p.a., rising to 6.1% p.a. next year. The freehold interest was acquired from a private Danish investor.
The property comprises a 219 bed room hotel totaling approximately 73,500 ft² (approx. 6,830 m²). It is situated on Kings Cross Road in Central London, less than a mile from Kings Cross and Farringdon stations. It is an improving area, currently benefitting from significant development activity and major infrastructure improvements.
The hotel is let to Travelodge for a further 26 years with an option to extend the lease. The rent is reviewed every five years in line with RPI.
Richard Dean, Senior Director within UK Separate Accounts commented “This asset is in an excellent Central London location where there is a limited supply of budget hotel sites and strong occupational demand. This investment offers an attractive income stream and should deliver a good return for our client.”
CBRE Global Investors were represented by the Knight Frank specialist property investment team and the vendor was advised by Lindley Mortimer.