LondonMetric Property has acquired nine Premier Inn hotels in a sale and leaseback deal with Whitbread for £89m in a deal reflecting a net initial yield of 5.3%.
The portfolio is let on new 30-year leases and generates annual rent of £5m with five-yearly CPI-linked rent reviews.
The hotels, which provide 955 bedrooms, are located at Southampton Airport, Kings Langley, Milton Keynes, Poole, Colchester, Fareham, Waltham Abbey, Chipping Norton and Warwick.
Through its Premier Inn brand, Whitbread is now LondonMetric’s fourth largest occupier, contributing £11.3m of annual rent and accounting for 2.7% of LondonMetric’s total rent.
Andrew Jones, chief executive of LondonMetric, said: “This transaction adds high quality and mission critical assets that generate a long, strong and growing NNN income in a sector that continues to benefit from evolving consumer preferences for travel, entertainment and experience. It follows on from our recent £44m hotel portfolio acquisition from Whitbread and increases our ownership to 22 modern Premier Inn hotels.”
