Haymarket Travelodge traded in portfolio deal

LXi REIT has bought the Travelodge at Old Haymarket, Liverpool as part of a five-hotel deal worth £45.2m.

The deal, which also includes hotels in Aberdeen ,Brighton, Llanelli and Nuneaton, reflected a 5.8% net initial yield.

Each property is fully let to Travelodge Hotels, with a weighted average unexpired lease term to first break of 24 years. Each benefit from five yearly rent reviews index-linked to the uncapped Retail Prices Index.

Formed in 1985, Travelodge now operates more than 550 hotels and over 41,000 rooms in the UK, Spain and Ireland.

LXi REIT has been making inroads in the hotel market, buying a Travelodge in Edinburgh and the Jurys Inn Plymouth in October to add to previously acquired Travelodges, Premier Inns and the Cambridge Belfry, bought in 2017 for £18.5m.

The Liverpool hotel has 105 bedrooms, and was developed as part of Urban Splash’s development of Old Haymarket in the early 2000s.