TRAVELODGE
BRIDGE STREET,
NEWPORT,
NP20 4AP
FREEHOLD HOTEL INVESTMENT
LET TO TRAVELODGE HOTELS LTD WITH 17.2 YEARS UNEXPIRED
TRAVELODGE BRIDGE STREET, NEWPORT, NP20 4AP
STATION QUARTER
PHASE 2
Outline for indicative purposes only.
INVESTMENT SUMMARY
• Freehold Hotel Investment
• Located adjacent to Newport Rail Station
with good access to Newport City Centre
and the M4 Motorway.
• 62 bedrooms. 19,432 sq ft (1,805.3 sq m)
• Let to the strong covenant of Travelodge
Hotels Ltd (D&B rating: 5A2) benefitting
from 17.2 years unexpired
• Current passing rent of £249,897 per annum
• Lease subject to five yearly uncapped
RPI indexed rent reviews
• Offers in excess of £3,475,000 (Three Million,
Four Hundred and Seventy Five Thousand Pounds)
subject to contract and exclusive of VAT. A purchase
at this level reflects an attractive net initial yield of
6.75% (assuming purchaser’s costs of 6.50%).
TRAVELODGE BRIDGE STREET, NEWPORT, NP20 4AP
Friars Walk Shopping Centre
A465
1
59
B4
A4042
Pontypool
A48
A449
A420
A4
A37
Weston-super-Mare
A46
BATH
A38
A4
St
ree
t
BRISTOL
Ble
wi
tt
M32
BristolA38
East Street
M4
M5
Barry
B4591
A433
Chipping
Sodbury
West Street
Penarth
Street
Bridge
e
Lan
ool
Sch
A4232
Cardiff
Avonmouth
Pontshead
A4
Rd
Hill
ow
St
North Street
CARDIFF
A48(M)
M4
A403
M49
Albert Te
rrace
A470 A48
M4
eld
kfi
Oa
M48
NEWPORT
Tun
ne
l Te
rra
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Pontypridd
A470 Caerphilly
Lla
nth
ew
yR
oad
SWANSEA
Chepstow
B4
59
1
Cwmbrân
ee
Qu
Street
Station
M5
Neath
Port Talbot
lace
on P
Dev
Ro
ad
2
04
A4
Swansea
Forest of Dean
Bailey Street
Cardiff airport is located 40 km (25 miles) south west of Newport and is accessible via
the M4. Cardiff airport has one terminal which sees over 1.9 million passengers per
year travel to over 60 regular destinations.
M4
Go
dfr
ey
A40
Abergavenny
s
Gold Top
GLOUCESTER
K
Merthyr
Tydfil
A48
A40
A40
US
A470
Ross-on-Wye
A4137
A465
A417
ER
al Park
Brecon Beacons Nation
oad
Fields R
M50
ns
wa
y
A40
A40
A449
A479
Brecon
Plac
nce
lare
6 C
B459
t
tree
Mill S
d
Roa
ney
Rod
A49
A438
A40
A483
scent
rk’s Cre
St Ma
A4172
A465
Newport Railway Station provides regular services to Cardiff Central, Bristol and London
Paddington with a fastest journey time of 15 minutes, 20 minutes and 113 minutes
respectively.
Hereford
RIV
Newport is a Cathedral and University City in the unitary authority of Newport, in south
east Wales. The City is located 22.5 km (14 miles) east of Cardiff 50 km (31 miles)
north west of Bristol and 9.6 km (6 miles) south of Cwmbran. The City has a population of
approximately 139,000 with a shopping catchment of approximately 310,000 people.
Newport benefits from good road communications with access to junctions 26, 27
and 28 of the M4 connecting to Cardiff to the west and Bristol to the east.
A438
A438
A483
Stow Hill
A470
t
tree
ke S
Loc
2
04
A4
LOCATION
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tC
oo
Great
sF
ltMalvern
Co
A449
A4103
A438
B4591
os
e
Friars Walk Shopping Centre
an
ot L
Talb
TRAVELODGE BRIDGE STREET, NEWPORT, NP20 4AP
SITUATION
The property is situated on the northern side of Bridge Street, adjacent to
its junction with Station Street and within a 5 minutes walk of Newport retail
centre including Commercial Street and the recently completed Friars
Walk Shopping Centre.
The property is surrounded by a range of commercial and residential uses
centred around the recently upgraded Newport Rail Station. Nearby occupiers
include Admiral Insurance, Natwest, McDonalds, HSBC, Argos and Greggs.
Admiral House, situated adjacent to the property, comprises an 80,644 sq ft
Grade A office accommodating approximately 1,200 staff. Planning consent
has recently been granted to develop Phase 2 of the Station Quarter to provide
a new Grade A office extending to 45,000 sq ft. Upon completion this will likely
benefit the property with increased demand for hotel accommodation.
DESCRIPTION
The property is a recently converted building with the accommodation
arranged over ground and upper floors providing a total of 62 en-suite
bedrooms. Part of the ground floor of the building has been sold off on
a long lease.
The hotel benefits from customer parking facilities providing 11 car parking
spaces accessed via Station Street. An additional 44 car parking spaces
are available in the NCP Car Park, adjacent to the property.
TENURE
SITE
Freehold.
Site area approximately 0.20 ha (0.49 acres).
ACCOMMODATION
The property provides 62 bedrooms and the following Gross Internal
Area (GIA): 19,432 sq ft (1,805.3 sq m)
TENANCY
The property is let on full repairing and insuring terms to Travelodge
Hotels Ltd for a term of 25 years from 13/02/2009 expiring on
12/02/2034 at a current rent of £249,897 per annum.
The property is subject to five yearly uncapped RPI indexed rent
reviews with the next review due on 12/02/2019.
Part of the ground floor of the property including the restaurant and
units 7, 9, 11 and 13 are sold off on a long lease. The long lease is
subject to a term of 225 years at a peppercorn rent.
Sold off on Long Lease
© Crown Copyright, ES 100004106. For identification purposes only.
TRAVELODGE BRIDGE STREET, NEWPORT, NP20 4AP
COVENANT INFORMATION
EPC
Travelodge Hotels Ltd: D&B rating: 5A2
The property has been rated Grade C (70).
The EPC Certificate is available on request.
Founded in 1985, Travelodge is the UK’s first budget hotel brand and is now Britain’s
only independent hotel chain. The company is the second largest hotel brand
in the UK with 30.4% of the UK budget hotel sector and as of January 2016
the chain operates 526 hotels and 38,000 rooms across the UK, Ireland
and Spain.
Travelodge has recently undertaken a successful refinancing
and the proceeds of the new arrangements have allowed
Travelodge to repay all their existing bank loans on 10
May 2016, which were due in 2017 and 2018. This
extends the maturity of Travelodge’s debt, giving the
company room to operate and greater flexibility.
Company accounts, D & B and Riskdisk
Ratings are available on the dataroom.
Key performance details are as follows:
UK like for like Key
Performance Indicators
2015
2014
Growth
Occupancy
76.6%
75.6%
1.0 pts
Average room rate
£50.19
£45.53
10.2%
Revenue Per Available Room
EBITDA
Operating Profit*
*Before exceptional items.
£38.44
£34.42
11.7%
£101.9m
£62.8m
62.3%
£64.1m
£32.4m
98%
VAT
The property is elected for VAT and it is anticipated
that the transaction will be treated as transfer of a
going concern (TOGC).
TRAVELODGE BRIDGE STREET, NEWPORT, NP20 4AP
Proposal
Offers in excess of £3,475,000 (Three Million, Four Hundred and Seventy Five Thousand Pounds) subject to contract and exclusive of VAT.
A purchase at this level reflects an attractive net initial yield of 6.75% (assuming purchaser’s costs of 6.50%).
For further information or to make arrangements for viewing please contact:
Jeremy Hodgson
020 7543 6709
Mark Dansky
020 7543 6813
Tom Dales
020 7543 6866
[email protected]
[email protected]
[email protected]
DATAROOM
For access to the Allsop Dataroom please use the following link: http://datarooms.allsop.co.uk/register/newtravel
Existing users can log in to the dataroom site and register using access code: newtravel
www.allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to
be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties,
undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as
to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary
searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD www.commandHQ.co.uk 11.16