- A rare opportunity to purchase an established and securely let hotel in a prominent position with index linked rental uplifts.
- Conveniently located on Harrogate Street in Wigan, close to the main shopping and business district.
- 83 bed hotel over ground and 4 upper floors together with reception, ground floor bar / restaurant and ancillary accommodation.
- Let to Premier Inn Hotels Limited on a lease expiring on 27th April 2039 with a tenant’s break at 27th April 2034 providing 12.5 years term certain on full repairing and insuring terms.
- Current rent of £302,862.59 per annum equating to a very low rate of £3,648 per bedroom.
- The rent is reviewed every 5 years to the Consumer Price Index upward only and capped at 4.00% with the next review is on 17th April 2024. Assuming CPI growth at 3.00% pa until the next review we estimate the reversionary rent to be £345,051 per annum.
- Premier Inn in the UK’s largest hotel brand with over 800 hotels and 78,500 rooms and employing over 30,000 people. For the year ending Feb 2021 Premier Inn Hotels reported turnover of £249million (2020 £911million) with the decrease due to Covid 19 Pandemic, pre-tax loss of £250million (2020 £127 million profit) and net worth of £885million.
We are instructed to seek offers in excess of £5,400,000 (Five Million Four Hundred Thousand Pounds) subject to contract and exclusive of VAT, reflecting a net initial yield of 5.26% and an estimated reversion in 2024 to 6.00% after the deduction of purchaser’s costs of 6.61%.