Travelodge Hotel
Beswick Drive
Crewe
CW1 5NP

Virtual Freehold Hotel Investment

  • Let to Travelodge Hotels Limited until 2030 with a Landlord option for a reversionary lease for a further 5 years (1)
  • Tenant Option to Renew the Lease for a further 25 years (1)
  • Includes a 56 bedroom hotel with Car Parking for approximately 92 cars (2)
  • CPI linked rent reviews (3)
  • Neighbouring occupiers include Bannatyne Health Club and Spa, Co-op Food, Subway, Jaguar and Apollo Buckingham Health Science University
  • Lot
    11
  • Auction
    10/Dec/2020
  • Rent
    £218,610 per Annum Exclusive
  • Status
    Available
  • Price*
    £2,200,000 - £2,300,000
  • Sector
    Leisure
  • Auction Venue
    Live Streamed Auction
  • On behalf of Pension Trustees
  • Travelodge Hotel<br>Beswick Drive<br>Crewe<br>CW1 5NP
  • Expand
  • Photos
  • Map

* More information on the term "price" can be found here

Property Information

Location
Miles
27 miles South west of Manchester
31 miles South east of Liverpool
10 North west of Stoke on Trent
Roads
M6, A534, A5020, A500
Rail
Crewe Railway Station
Air
Manchester Airport,
Liverpool John Lennon Airport
Situation

The property is situated immediately to the south of the busy Crewe Green roundabout at the junction of the A534 and A500. The property also benefits from being situated immediately to the north of the major Crewe Gates Industrial Estate. Neighbouring occupiers include Bannatyne Health Club and Spa, Co-op Food, Subway, Jaguar and Apollo Buckingham Health Science University.

Tenure

Virtual Freehold. Held for a term of 999 years from 9th October 2015 at a peppercorn rent.

Description

The property comprises a modern three storey 56 bedroom hotel with car parking for approximately 40 cars and the right to use further spaces on the wider estate.

Completion Period

Eight Week Completion

EPC

Band B. See legal pack.

Tenancy & Accommodation

FloorUseFloor Areas
(Approx)
TenantTermRent p.a.xReview
Ground
First
Second
Hotel
Hotel
Hotel
627.79 sq m
627.79 sq m
627.79 sq m
(6,757 sq ft)
(6,757 sq ft)
(6,757 sq ft)
Travelodge
Hotels Limited (5)
(CRN 00769170)
25 years from
21st October 2005 until 2030
on a full repairing and
insuring lease. The Landlord
has an option for a
reversionary lease for a
further 5 years. The tenant
has an option to renew the
lease for a further 25 years.(1)
£218,610 (4)21st October
2020 and
2025 and
reviewed
thereafter in
accordance with
the options.
(3)
Total
1,883.37 sq m
(20,271 sq ft)
  £218,610 (4) 

(1) The property is let until 20th October 2030 by virtue of the lease for 25 years from 21st October 2005. The Landlord has the benefit of a unilateral option in respect of a Reversionary Lease for an additional term of 5 years. The lease contains a Tenant's option to renew for a 25 year term with 5 year rolling tenant option to determine the lease.

(2) The property includes a car park for approximately 40 cars. The occupational lease refers to rights in relation to an additional 52 car parking spaces on the wider estate.

(3) The lease provides for a fixed minimum increase in rent in line with the Harmonised Index of Consumer Prices published by the Office for National Statistics. (The Consumer Price Index of the UK is one of the very few cases where the CPI and the HICP are the same index. see https://www.ons.gov.uk/economy/inflationandpriceindices/articles/coveragedifferencesbetweentheharmonisedindexofconsumerpricesandnationalconsumerpricesindices/2016-05-23)

(4) The current rent reserved under the terms of the lease is £179,206 per annum exclusive. The £218,610 per annum exclusive stated above has been calculated by the Landlord as at the October 2020 rent review by applying the rent review Formula stated in schedule 4 of the lease by increasing the initial rent reserved of £157,500 by the percentage difference between the CPI index for September 2005 and September 2020. Bidders must satisfy themselves before bidding as to the interpretation of the rent review clause and the calculation of the revised rent.

Under the terms of the June 2020 Travelodge Company Voluntary Arrangement (CVA) the Tenant will pay a compromised rent at 70% of the current rent reserved of £179,206 amounting to £125,444 per annum exclusive throughout 2021. The compromised rent period ends on 31st December 2021. The rent due under the terms of the lease from 1st January 2022 will revert to £179,206 being the current rent reserved until such time as the October 2020 rent review has been settled.

The Seller will top up the compromised rent payable during the concessionary rent period by paying the Buyer a sum equivalent to the difference between the compromised rent of £125,444 per annum exclusive and the revised rent of £218,610 per annum exclusive for the period from the date of completion until the 31 December 2021. Therefore the property will effectively produce £218,610 per annum exclusive to the Buyer from completion, subject to the 21st October 2020 rent review being settled.

The terms of the CVA also state that the Tenant will pay to the Landlord, within a defined period any additional rent due as a result of an increase in rent from the October 2020 rent review. In accordance with the terms of the concessionary rent provisions within the 2020 CVA, the increase in rent will be compromised to a) 25% for amounts due from the rent review date (21st October 2020) until 31st December 2020 and b) 70% for amounts due throughout 2021. In this case amounting in aggregate to approximately £29,000.

The Special Conditions of sale provide for any increased rent as a result of the 21st October 2020 rent review to be for the benefit of the Buyer, so there is no obligation on the Buyer to account to the Seller for the increased rent as a result of the 21st October 2020 rent review. Consequently by virtue of the topping up outlined above the Buyer will in effect benefit from being paid a portion of these rent arrears in duplicate for the period from completion to the 31st December 2021.

In addition under the terms of the CVA the Landlord may be entitled to further payments based on a cumulative excess EBITDA calculation over 2020, 2021 and 2022 which would become payable in 12 instalments on a monthly basis commencing in May 2023. See Clause 4.4 p.10 of the CVA.

Bidders must satisfy themselves before bidding as to the interpretation of the rent review clause, calculation of the revised rent, effect of the CVA, the options to renew and the Special Conditions of Sale.

(5) Travelodge is the UK's largest independent hotel brand, with more than 560 hotels and 40,000 guest bedrooms. More than 170 of their hotels have an on-site bar/café/restaurant, and almost all are located close to other restaurants and coffee shops, making Travelodge the ideal base for travel (Source: www.travelodge.co.uk 18/11/2020).

If you are the successful bidder, Acuitus requires a separate payment of £1,000 inclusive of VAT as a buyer's administration charge payable to Acuitus Limited upon exchange of contracts. A VAT receipt will be provided upon payment.

Due to the current restrictions in movement throughout the UK, the property may not have been inspected by Acuitus. Some photographs may not be current and these will be dated where this is the case. Plans showing nearby occupiers and mention of nearby occupiers may reflect a dated situation as some tenants are not currently in occupation. Floor areas and accommodation details are likely to have been obtained from VOA.Gov.UK and the Vendor.

Property Documents

  • Solicitors Legal Pack
    Updated Date
    26.11.20
    File Size
    26 MB
    Login to View
  • Site Plan
    Updated Date
    20.11.20
    File Size
    3 MB
    View PDF
  • Catalogue Page
    Updated Date
    23.11.20
    File Size
    1 MB
    View PDF
  • Common Auction conditions
    Updated Date
    01.07.20
    File Size
    277 KB
    View PDF
  • Memorandum of Sale
    Updated Date
    27.03.17
    File Size
    27 KB
    View PDF
  • Money Laundering Regs
    Updated Date
    07.10.20
    File Size
    1,016 KB
    View PDF
  • Customer Due Dilligence Form
    Updated Date
    20.05.20
    File Size
    585 KB
    View PDF

Contacts

Acuitus
John MehtabJohn Mehtab +44 (0)20 7034 4855 +44 (0)7899 060519john.mehtab@acuitus.co.uk
Billy StruthBilly Struth +44 (0)20 7034 4854billy.struth@acuitus.co.uk
Seller's Solicitors
Osborne Clarke Solicitors
Sarah Beard 020 7105 7616Sarah.Beard@osborneclarke.com

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