CoStar News - IM sells Travelodge at record yield as Kimmre toasts expansion into hotels sector
IM Properties has sold the Travelodge London Kew Bridge hotel in Brentford for £29m at what is understood to be a record yield of 4.1% for a budget hotel in Greater London.
The hotel has been sold to an undisclosed UK investor as institutional appetite for long-leased hotels continues to grow.
IM Properties bought the hotel as part of the Grove London portfolio from joint venture partners Goldman Sachs, Avenue Capital and Golden Tree Asset Management for £73m at the beginning of 2018, reflecting a net initial yield of 4.88%. The portfolio comprised four Travelodge Hotels let with a WAULT to expiry in excess of 31 years with a total passing rent of £3,599,249 pa.
Kimmre advised IM Properties on the acquisition and has now advised on the completed sale. IM's acquisition apportioned a price of £25.5m to the Kew Bridge hotel.
Agent Kimmre expanded recently into the Hotel and Alternative Investment market with the recruitment of Rory Turner and Charlie Moulton.
It said it advised on close to 50% of the total market turnover of budget hotel transactions in Q4 2018 according to Travelodge’s Deal Tracker, which reported that Kimmre has been involved in five of the 11 transactions recorded in Q4, reflecting £109m of a total of £235m of transactions and a further £110m in the prior few months.
The most notable were the acquisition of the London Grove Portfolio for £73m and subsequent onward sale of the Travelodge in Kew as well as the Kingston hotel. Other deals include the acquisition of a second portfolio of 18 Travelodge Hotels and an off-market acquisition of a hotel in Hatfield for a UK County Council Fund.
Kimmre said it is also advising on a number of managed hotel fundings and investment acquisitions as well as other hotel development projects.
Mike Burden, co-founding Partner of Kimmre, said: “We are proud to be able to offer clients best in class advice in this growing asset class, across the entire spectrum from long leased budget hotels through to full service managed and franchised hotel investment and developments. There is no substitute for specialist advice, which is why Kimmre have focused on growing this part of the business.”