Aviva Investors advised by Gerald Eve have purchased the Travelodge Hotel, West Hill Road Bournemouth for £6.86 million (approx. 8.1 mln.), which reflects a net initial yield of 6.2%.
The 110 bedroom hotel produces an annual rent roll of £449,900. It is let for 35 years from September 2009. Savills acted on behalf of the vendor, a private individual.
Just round the coast at Southampton's West Quay, Gerald Eve advised LaSalle Investment Management on the land acquisition from Development Securities and forward funding of a 155 bedroom hotel leased to Premier Inn and three retail units. The hotel is due to open in 2011.
Nick Barber head of hotel agency at Gerald Eve said: "Over the last couple of months we have seen very strong investor demand for prime budget hotel covenants such as Premier Inn and Travelodge."
GVA Grimley advised Development Securities.
Source: Brown Lloyd James Financial