A former Travelodge hotel next to London's Gatwick Airport is set to relaunch as a Hyatt Place-branded property.
Railpen, the investment manager for the £30b railways pension scheme, has acquired the commercial ground rent secured against the 185-bedroom property, which is let on a 150-year lease to Axcel Hospitality Group.
Axcel is to refurbish the hotel, including upgrading rooms and a full renovation of the reception, restaurant and bar areas, which is expected to complete in the third quarter of 2021.
Julian Allport of Railpen's long-term income fund said: "The hotel is well-located for long-term growth, managed by an experienced operator and benefits from a franchise agreement with one of the world's leading brands."
Railpen and Axcel Hospitality Group dealt direct, with legal counsel provided by Winckworth Sherwood and Harold Benjamin, respectively.