Travelodge London Excel, 1016 Docklands Road, London
Description
- Price Offers in excess of £14 at 6.00% NIY (£109,000 per bed)
A modern, purpose-built 131-bedroom hotel, originally constructed in 2012 and extensively refurbished in 2022 to align with Travelodge’s latest design standards.
The property is arranged over ground and four upper floors, with each room benefiting from en-suite facilities. The top floor includes Travelodge’s premium ‘Standard Rooms Plus,’ offering enhanced amenities. All rooms are equipped with a king-sized bed, en-suite shower, desk, blackout curtains, bedside USB ports, and tea and coffee-making facilities for guest convenience.
The property is situated on Dockside Road overlooking the Royal Victoria Docks area regeneration. The hotel benefits from being in an unbeatable location adjacent to London’s ExCeL Centre, London City Airport, and the University of East London, making it exceptionally well-suited for both business and leisure guests.
The site area extends to approximately 1.17 acres (0.47 hectares).
The property is arranged over ground and four upper floors, with each room benefiting from en-suite facilities. The top floor includes Travelodge’s premium ‘Standard Rooms Plus,’ offering enhanced amenities. All rooms are equipped with a king-sized bed, en-suite shower, desk, blackout curtains, bedside USB ports, and tea and coffee-making facilities for guest convenience.
The property is situated on Dockside Road overlooking the Royal Victoria Docks area regeneration. The hotel benefits from being in an unbeatable location adjacent to London’s ExCeL Centre, London City Airport, and the University of East London, making it exceptionally well-suited for both business and leisure guests.
The site area extends to approximately 1.17 acres (0.47 hectares).
BUILDING HIGHLIGHTS
Prominent hotel located in the London Docklands, which is an extremely popular business and tourist destination home to London ExCel, the O2 Arena, Canary Wharf and London City Airport.
Modern, purpose built 131-bed hotel that was originally constructed in 2012 and extensively refurbished in 2022.
Let on a FRI lease to Travelodge Hotels Ltd until 31st December 2046 providing an unexpired term certain of 22.20 years.
Current passing rent is £911,321 per annum reflecting a low average room rate of £6,957 per key.
5 yearly upwards only CPIH linked rent reviews subject to a collar and cap of 1% - 4% per annum compounded annually.
Next rent review is due on the 18th June 2027 where the rent is forecast to increase to approximately £1,045,000 per annum.
Travelodge achieved record revenue exceeding £1 billion in 2023, a performance that has continued into 2024, prompting Moody's and S&P to upgrade their credit ratings to B3 and B, respectively.
Travelodge Hotels Ltd have a D&B rating of 5A2 representing a very low risk of business failure.
Long leasehold interest with 187 years unexpired at a peppercorn rent.
Specification
We are inviting offers in excess of £14,230,000 subject to contract and exclusive of VAT.
A purchase at this level will reflect a Net Initial Yield of 6.00% and a Reversionary Yield of 6.90%.
The property has a capital value of £109,000 per key after allowing for purchaser costs of 6.73%.
A purchase at this level will reflect a Net Initial Yield of 6.00% and a Reversionary Yield of 6.90%.
The property has a capital value of £109,000 per key after allowing for purchaser costs of 6.73%.