Colliers International has been instructed to sell the Park Inn by Radisson in York on behalf of LR (York) Ltd.
Currently let to Park Hotels Management Ltd for a term of 25 years, with nearly 16 years un-expired, the hotel is being marketed for offers over £20 million, representing a NIY of 7.75 per cent.
Located on North Street on the Southern bank of the River Ouse, close to York’s central business district, the three star Hotel comprises 200 rooms over seven floors, with part of the hotel located over the adjacent building, known as Riverside Block. Furthermore, the hotel includes a PACE health centre and parking facilities for up to 90 cars.
Initially constructed in 1969, the building has benefited from extensive refurbishment programmes in 2009 and again in 2012, with on-going improvements being made since on a rolling programme.
On the sale, Julian Troup, Head of UK Hotels at Colliers International, said: “York is a key UK hotel market, with its strong regional business centre and reputation as a popular leisure destination and university town.
“Restrictions on new development, due to the city’s historic nature, have ensured that demand and occupancy rates have remained high for hotels in York. This, coupled with the continuing strengthening of the UK provincial hotels market as a whole, means that we expect hotel trading performance in markets like York to continue in their on-going recovery.”
Tim Meakes, Director at Colliers International and property investment expert, added: “Park Hotels is a strong covenant with an excellent reputation as a mid-market hotel brand which operates more than 140 hotels across the EMEA region. The 7.7 per cent yield represents an attractive return, especially in a local market where room rates have increased by 6 per cent year on year.”