Long Let Hotel led Investment

Hotel led, mixed use building in a prominent location. Freehold island site of 0.48 acres (0.19 hectares). The building comprises a 114-bed hotel, 9 retail units on the ground floor, along with a self contained unit at the rear, and 25 car parking spaces. The hotel is leased to Travelodge Hotels Limited at a rent of £708,097 p.a, reflecting a low rent per key of £6,212. Over 20 years unexpired to Travelodge with 5 yearly uncapped RPI reviews. Total passing rent £924,297 p.a with a WAULT of 16.8 years to break. 77% of the income secured to Travelodge. Over the past five years, the midscale and economy hotel market in Nottingham has demonstrated strong performance. The 12-month rolling average RevPAR increased from £39.23 in January 2020 to £55.83 in January 2025, representing an average annual growth rate of 8.5%. Occupancy levels for midscale and economy hotels in Nottingham average 81.2% over the last 12 months. With limited new supply and no upcoming developments, these high occupancy levels are expected to remain stable, alongside anticipated ADR growth. The property received planning permission for change of use from hotel to 121 student apartments (now lapsed) offering the purchaser strong alternative use optionality.