Market

£7m price tag on Cleethorpes’ Premier Inn as investment opportunity hits the market

Cleethorpes’ Premier Inn has hit the market for a cool £7 million.

The investment opportunity includes the 84-room hotel and adjoining 192-cover Brewers Fayre restaurant, let on a long-lease to the Whitbread Plc company.

Birmingham-based investment house Connection Capital bought the site for £5.49 million from northern Lincolnshire developer Maltgrade as the Meridian Point site opened, having helped finance the project – a model replicated within the portfolio.

Read more: She’s in the mood for modelling – Coleen Nolan joins Tilletts as a brand partner

It is now being marketed by Avison Young, with the commercial specialist flagging up the £6.7 million investment heading to the resort in the next three years.

Grimsby chartered surveyor Lawrene Brown, managing partner at Scotts, said:“As we emerge from the restrictions imposed as a result of the pandemic, there is a school of thought that the hospitality industry is going to see a resurgence of demand from both business occupiers and holiday makers alike – so this could lead to strong performance across the sector making investment into this type of property attractive.

“With returns on cash still at a low level and money remaining relatively cheap to borrow, despite the Bank of England’s recent increase in the base rate, investors are looking for opportunities to get a better return on their portfolios so offering the property for sale at this time might be an astute move.”

It had barely been open a year when a 20-room extension was added to the four storey build, which sits on a two acre site.

The freehold is currently held by North East Lincolnshire Council.

Premier Inn is contracted to late 2039, with a break in November 2033.

Keep up-to-date with all the latest developments – follow BusinessLive Humber on Twitter and LinkedIn.



Source link

Leave a Reply

Your email address will not be published.