Frank-Steier Price Ltd. Leading niche commercial property investment practice Logo for Midlands Property Awards 09

January 2020

Travelodge Plus Hotel, Gallows Hill, Leamington Spa, CV34 6SP

Image 01 - Spine Road LR

under offer

The property is prominently located on Gallows Hill, adjacent to the A452, the principal route from junctions 13 & 14 of M40 to the town centres of Leamington Spa and Warwick.  Leamington Spa town centre is 2.5 miles to the north east.  The development comprises a new 99 bed Travelodge Plus Hotel on a site of 0.40 hectares (1.00 acre).  The hotel is to be let to Travelodge Hotels Ltd for 30 years from completion with an option to renew for a further 25 years.  Commencing rent of £573,606 per annum which reflects £5,794 per room.  Rent is reviewed 5 yearly upwards only to compounded RPI collared at 1% and capped at 4% per annum.  Travelodge Hotels Ltd operated over 540 hotels in the UK & Ireland with a D&B rating of 5A1.  Practical completion anticipated in May 2021.  Offers sought for the freehold interest in excess of £11,316,000 (Eleven Million Three Hundred and Sixteen Thousand Pounds) which reflects a net initial yield of 4.75%, assuming purchaser’s costs of 6.71%.