Plans to convert a former office space into a 56-bedroom Travelodge hotel in Bath is the latest in a series of hotel developments in the city.
Savills Investment Management has obtained planning permission on behalf of its Charities Property Fund to convert a property at Westgate Buildings into a hotel and pre-let it to Travelodge on a 25-year lease.
Angy Benitz, portfolio manager for CPF at Savills Investment Management, said: "Bath attracts almost one million overnight visitors each year and is undersupplied in terms of hotel rooms, making this a great hotel for Travelodge. Bath is exactly the type of location that we look to invest in over the long term because it is supply constrained coupled with robust occupier demand. We have deliberately built up a core holding within the immediate vicinity of this asset extending to three other nearby properties.
"This asset management initiative was set out in the business plan at purchase and has resulted in an 85% increase in rent and a doubling in value for the upper parts. Achieving planning permission and securing Travelodge is a great result for our charity investors, some of whom are located in Bath."
Other current hotel developments in Bath include the 117-bedroom Hotel Indigo, the boutique brand from InterContinental Hotels Group (IHG). St James' Hotel Group has just been granted planning permission to construct the hotel, scheduled to open at the end of 2017. Meanwhile, Apex Hotels is due to open a 177-bedroom hotel in the city in summer 2017.
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