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Alton Towers owner acquires 55 Travelodge hotels for nearly £200m

08 September 2016 by
Alton Towers owner acquires 55 Travelodge hotels for nearly £200m

Investment group Secure Income REIT (SIR), which owns theme parks Alton Towers and Thorpe Park, has agreed to buy the freehold to 55 Travelodge hotels for £196m, subject to a share placing which should raise £140m.

The hotels, which will continue to be let to budget hotel group Travelodge, include the brand's Oxford Peartree, Edinburgh Central, Manchester Central, Glasgow Central and Exeter M5 hotels. It also includes Travelodge's Milton Keynes Central, Southampton, Northampton Upton Way, Nottingham Riverside, Ely and Bristol sites.

SIR's existing portfolio includes the freehold of 26 healthcare and leisure venues, including Alton Towers, Thorpe Park, 19 private hospitals in England and central London's only private psychiatric hospital, together valued at £1.38b. Including the Travelodge portfolio of 3,096 rooms across 55 hotels, the group's portfolio will be increased to 81 sites at a value of approximately £1.57b.

Martin Moore, chairman of SIR, said: "Today's proposed acquisition and placing are exciting for the company and indicative of the strong ambitions we have to grow the business. This transaction delivers further upwards only RPI linked income, which will be significantly accretive to earnings, enabling us to continue to increase dividend payments and improve total shareholder returns.

"Furthermore, the acquisition expands and diversifies Secure Income REIT's asset base through the purchase, at an attractive yield, of a portfolio of long lease assets in a highly robust sector, let to the UK's second largest budget hotel chain."

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