Standard Life Assurance acquires Birmingham Premier Inn for £26.5m
Standard Life Assurance has acquired the Premier Inn Birmingham City Centre (Waterloo Street) hotel for £26.5m from a syndicate of private investors represented by investment manager Downing.
Formerly an office building, the premises was acquired eight years ago and converted into a hotel by Cannock Developments on behalf of the Downing investors.
Property consultancy MK2 Real Estate advised the vendors.
Mark Johnson, a director of MK2, said the deal has set a new benchmark for regional hotel yields: "The price reflects a net initial yield of 4.12%. By agreeing a 20-year lease extension with Premier Inn on sale we were able to achieve maximum value for the asset and our client.
"The sale attracted lots of interest with a number of institutional investors competing to secure the deal and bidding significantly ahead of the asking price. This demonstrates confidence in Birmingham and the booming hotel sector."
Premier Inn plans new site on Anglesey >>
Premier Inn to open at Fareham shopping centre >>
20-storey Premier Inn plans for Cardiff's Custom House >>
Premier Inn plans for former Derrys department store in Plymouth >>
Videos from The Caterer archives
