Sales

Travelodge London Excel

1016 Docklands Road, London E16 2FQ
Opportunity to purchase a longlet hotel in London Docklands with strong demand drivers.
  • Prominent hotel located in the London Docklands, which is an extremely popular business and tourist destination home to London ExCel, the O2 Arena, Canary Wharf and London City Airport.
  • Modern, purpose built 131-bed hotel that was originally constructed in 2012 and extensively refurbished in 2022.
  • Let on a FRI lease to Travelodge Hotels Ltd until 31st December 2046 providing an unexpired term certain of 22.20 years.
  • Current passing rent is £911,321 per annum reflecting a low average room rate of £6,957 per key.
  • 5 yearly upwards only CPIH linked rent reviews subject to a collar and cap of 1% - 4% per annum compounded annually.
  • Next rent review is due on the 18th June 2027 where the rent is forecast to increase to approximately £1,045,000 per annum.
  • Travelodge achieved record revenue exceeding £1 billion in 2023, a performance that has continued into 2024, prompting Moody's and S&P to upgrade their credit ratings to B3 and B, respectively.
  • Travelodge Hotels Ltd have a D&B rating of 5A2 representing a very low risk of business failure.
  • Long leasehold interest with approximately 187 years unexpired at a peppercorn rent.

We are inviting offers in excess of £14,230,000 subject to contract and exclusive of VAT.

A purchase at this level will reflect a Net Initial Yield of 6.00% and a Reversionary Yield of 6.90%. The property has a capital value of £109,000 per key after allowing for purchaser costs of 6.73%.

searchclosedownloadarrow-circle-o-downenvelopeangle-double-upellipsis-vphone-handsetcrossarrow-leftarrow-right linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram