Pride Park hotel snapped up for £4.8m
A local investor has snapped up the Travelodge Hotel on Pride Park in Derby for £4.8m.
David Hargreaves of FHP Property Consultants acted on behalf of the buyer – whose identity has not been disclosed – to complete the deal.
The hotel includes 84 bedrooms and boasts 87 parking spaces. Travelodge Hotels ltd pay a passing rent of £307,750 pa to occupy the building.
A further 21 years remain on the lease.
Knight Frank acted for the vendor, whilst Russell Thompson of Massers Solicitors provided legal advice to the purchaser.
Hargreaves said: “This hotel, close to the Derby County football stadium and the nearby Events Arena, is a well-known national brand which trades well off affordable room rates. The investment offered our client a secure long term income stream of 21 years, with the landlords having the right to ask Travelodge to take a further lease for 8 years when the current lease expires in 2044.
“Furthermore the rent, which equates to £3,655/bedroom, is index-linked to the Retail Price Index without a cap which should guarantee good rental and capital growth over the coming years.”