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Long let hotel Investment

England, United KingdomUnlock address

83%

£11.560.000

Hotels & Resorts

#13597

Core, Core+

2 Feb 2024

Property Details

Broker

Deactivated

5.75 %

96

120,416

Freehold

Lease

ground floor retail, licensed bar, restaurant , car park

X

Fees

0.00 %

0.40 %

0.00 %

0.40 %

Investment Overview

The subject property was developed in 2010 and comprises a purpose built 96 bedroom hotel and ground floor retail unit. Whetstone is a key town centre within the affluent borough of Barnet, a large conurbation in North West London. The hotel is let at £535,221 p.a reflecting a low rent of £5,575 per key, on an FRI basis with c21 years unexpired. The lease is subject to five yearly, upwards only uncapped RPI rent reviews, with the next review in December 2025. The retail unit is let at a rent of £173,891 p.a with over 8 years unexpired. Rent reviews every 5 years to the higher of the passing rent or open market. Total passing rent of £709,112 p.a. The hotel is within a strong performing sub market with average Rev Par growth of 3.88% p.a for the 7 years prior to covid. The opportunity also benefits from asset management optionality to secure vacant possession on the retail unit and re-let on a 20 year lease with CPI rent reviews. Strong hotel vacant possession and alternative use values to include residential, student, care home and medical uses.