City centre hotel sold for £17.3m
THE Holiday Inn Express on Oxford Road in Manchester city centre has been acquired by property investment firm Heeton Holdings for £17.3m.
The deal between Singapore-based Heeton and the seller Manchester Property Holdings Ltd (MHPL), which was handled by Lambert Smith Hampton, represents a sub 7% yield.
The 12 storey building between the Palace Theatre and Manchester Metropolitan University has 147 bedrooms across 61,284 q ft and currently trades at over 80% occupancy.
On behalf of MHPL, Alastair Cattrell, said: “The sale is a strategic disposal capitalizing on the current buoyant market, which will allow us to focus on our other hotel projects.
“We are delighted with the sale price achieved by Lambert Smith Hampton, who have exceeded our expectations”.
Hugh Anderson, director and head of hotel and leisure at Lambert Smith Hampton, Manchester, said: “Manchester as a market has consistently performed strongly, with above average occupancy and room rates, due to the excellent location and strong trading performance it is no surprise that with strong demand in the provincial market for corporately branded assets that the deal exceeded the initial guide price.”
