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."
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