Search
The Caterer

Travelodge Woolwich sold for £8m

24 June 2013 by
Travelodge Woolwich sold for £8m

The freehold of the 120-bedroom Travelodge hotel in Woolwich, South West London, has been sold to an overseas investor for £8m.

Sold by Powis Street Estates, the transaction represents a net initial yield of 6.75%. The hotel opened in July 2012 and will continue to be let to Travelodge on a 25-year lease.

Tony O'Brien, UK development director for Travelodge said: "Very few investment sales have happened since Travelodge's financial restructure and change in ownership last autumn, so it has been difficult to assess where yields currently sit for the Travelodge covenant. This is a good indication and several other investment sales are in solicitors' hands which should provide a better picture shortly.

Travelodge is currently in the middle of a £57m refurbishment programme which includes the introduction of a new room design. More than 5,000 of its 30,000 bedrooms have been completed, more than half of the estate completed by the end of the year. Summer 2014 will see 85% of the bedrooms featuring the new design.

Colliers International and Cradick Retail acted as joint agents for the sale.

Travelodge Bath Waterside sold under the terms of CVA agreement >>

Travelodge offloads 38 of 49 CVA hotels >>

Travelodge to shed 49 hotels and reduce rent on 109 more as it enters CVA >>

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.