Details.
The vendor is seeking offers in excess of £9,750,000, subject to contract and exclusive of VAT, for the Travelodge London Chessington hotel investment opportunity. The property is let to Travelodge Hotels Ltd for an effective remaining term of approximately 18 years, with an option to extend for a further 25 years upon expiry. The current rent is £811,586 per annum, subject to five-yearly uncapped, upward-only CPI-linked rent reviews. Based on CPI remaining at 3% per annum, rent is forecast to rise to a minimum of £955,428 per annum in October 2027. After purchaser's costs of 6.69%, the asking level reflects a net initial yield of 7.80%, a reversionary yield of 9.18%, and a capital value of £227 per sq ft and £73,860 per bed.