BMO Real Estate Partners, part of Canada's BMO Financial Group, has acquired its first hotel: the Travelodge Bury St Edmunds for £9.5m, on behalf of the BMO UK property fund.
The 80-bedroom hotel, acquired from an undisclosed vendor, is let to Travelodge on a 25-year lease and the site also includes a 1,800 sq ft drive-thru Starbucks.
Guy Glover, portfolio manager at BMO Real Estate Partners, said: "This is an investment that will deliver long-term income with inflation linked uplifts from two strong covenants and supportive fundamentals underpinning the attractive income yield. Despite the broader uncertainty we've experienced in the UK, we see continued strength in alternatives, which has been one of the strongest performing real estate sectors alongside industrials, over the medium term."
Pictured: A Travelodge Plus room