Travelodge, Tolworth, KT6

• Situated in Tolworth, an affluent commuter area, with excellent transport links to central London.

• Located in a highly accessible area near to Tolworth Railway Station and the Kingston Bypass (A3).

• 132-bedroom hotel which forms part of a landmark mixed-use development.

• Provides a total net internal floor area of 42,894 sq ft (3,985 sq m).

• Let to Travelodge Hotels Ltd for an effective remaining term of 21 years. The tenant also has an option to extend the lease for a further 25 years upon expiry.

• Category A hotel in June 2020 CVA with all contractual rent & arrears fully paid.

• Low passing rent of £682,440 per annum reflecting £5,170 per bed per annum.

• The rent is subject to upward only 5 yearly uncapped CPI linked rent reviews.

• Based upon the CPI Index, the rent will rise to a minimum* of £735,840 pa (£5,575 per bed) in Oct 2022.

• New virtual freehold (999 years remaining).

• Significant development upside through conversion to residential with a GDV in excess of £20M.

• The vendor is seeking offers in excess of £10,650,000 (Ten Million Six Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT.

• After allowing for purchaser’s costs of 6.70%, this level would reflect:

  • Net Initial Yield of 6.00%.  

  • Reversionary Yield (Oct 2022) of 6.47%.

  • Capital value of £248 per sq ft & £80,680 per bed

    * Assuming a minimum of 1.5% pa CPI growth forecast for the remaining period prior to the October 2022 rent review