BMO Real Estate Partners (BMO REP) has completed a deal to buy two newly developed Travelodge hotels for £20 million from Hinton Group.
The properties, one in the Cotswold town of Whitney the other in Bristol, will operate on long term-term leases of 25 years. Both schemes also have Costa Coffee drive-thru outlets, each let on 15 year leases.
The two pre-let developments were funded by BMO REP on behalf of a UK segregated mandate client and have a blended net initial yield of 5%.
“We are delighted to work with Hinton Group to acquire two newly built long let inflation-linked hotels for our client. These well located, limited service hotels also provide us with an opportunity to increase our client’s exposure to alternative assets, in a sector where we have strong conviction beyond the short-term disruption caused by the Covid-19 pandemic,” Matthew Howard, Director, Property Funds at BMO REP, said.
BMO REP is a pan-European property investment and asset management specialist that is part of Canada’s BMO Financial Group.