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.
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.