Real estate investment trust company LXI has acquired an under-construction Edinburgh Travelodge and the Jurys Inn Plymouth for a total of £36.6m.
Following a £175m capital raise earlier this month, LXI has completed the acquisition of the 247-bedroom Jurys Inn Plymouth (pictured) for £30m, reflecting a 5.7% net initial yield.
The property is fully let to Jurys Hotel Management (UK), the principal trading company of the Jurys Inn group, on a 24-year lease, with five yearly rent reviews.
The hotel, which was purpose-built in 2007 and fully refurbished in 2016, is one of the largest hotels in Devon, and includes a bar, restaurant and 11 conference and meeting rooms.
The company has also exchanged contracts to acquire the development of a 70-bedroom Travelodge hotel at Edinburgh Park, due to complete in the third quarter of 2019. The project represents a total investment by the company of £6.6m, reflecting a 5.4% net initial yield.
The property has been fully pre-let to Travelodge Hotels, the principal trading company of the Travelodge group, on a 25-year lease from completion of the building works, with five yearly rent reviews. Planning consent has been granted for the project.
The previous owners of the properties were not disclosed.
Simon Lee, partner of LXI REIT Advisors, said: "We are pleased to be investing just over £109m from our £175m capital raising announced on 12 October… These acquisitions will result in the full deployment of the recent capital raise in the next few weeks."
LXI also owns five Travelodge hotels, three Premier Inns and the Cambridge Belfry hotel, which it acquired for £18.5m last year. The company said further acquisition announcements will be made shortly.