Henderson Global Investors has purchased the freehold interest in the Kings Cross Royal Scot Travelodge Hotel from LPA Receivers Richard Crompton and John Cookson from Colliers International.
The purchase price was £54.1m, representing a yield of 5.5%.
The 408 room hotel is located in close proximity to the large-scale major redevelopment presently being undertaken at Kings Cross, including the new Google HQ. The property is also set to be comprehensively refurbished in 2014 as part of Travelodge’s £57 million refit programme.
Colliers International’s National Investment team acted on behalf of the LPA Receivers. BNP acted on behalf of Henderson’s.
Tony O’Brien, UK Development Director for Travelodge Hotels, said:
“Virtually all of the UK’s major institutional investors own Travelodge lease investments, but this is the first for Henderson Global Investors and we are delighted that they chose our second largest hotel as their first purchase.”
Marcus Langlands Pearse, Director of UK Property for Henderson Global Investors, said:
“The hotel is in line with the Funds policy to invest in strong and improving locations. Kings Cross is an area we believe is already and will in the future benefit from infrastructure and occupier improvements. We are also looking forward to working closely with Travelodge in the future.”