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 building.

• 42,943 sq ft (3,989 sq m).

• Let to Travelodge Hotels Ltd for an effective remaining term of c. 18 years.

• The tenant has an option to extend for a further 25 years upon expiry.

• Rent passing £811,586 per annum (£6,148 per bed), subject to 5 yearly uncapped CPI linked rent reviews.

• Passing rent represents an extremely low room rate for comparable London budget hotels.

• Based upon current CPI figures and forecasting at 3% per annum up to point of review, rent will rise to a minimum of £955,428 per annum (£7,238 per bed) in Oct 2027.

• New virtual freehold (999 years remaining) at a peppercorn rent.

• Directly underpinned by vacant possession value to convert to residential, subject to obtaining the necessary planning consent.

• The Vendor is seeking offers in excess of a £10,150,000 (Ten Million One Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT.

• After allowing for purchaser’s costs of 6.40%, this level would reflect:

  • Net Initial Yield of 7.50%

  • Reversionary Yield (Oct 2027) of 8.83%

  • Capital value of £236 per sq ft & £76,900 per bed