Travelodge Hotel investment purchased
We have purchased the Travelodge Hotel building in Scarborough, in line with our policy to acquire high quality commercial property investments and particularly those in our local area.
The 140 room hotel on St Nicholas Cliff is in a prime central location above the town’s South Bay. It is let to Travelodge for an unexpired term of almost 30 years with five yearly rent reviews, which are in line with uncapped movements in the Retail Price Index.
No public money was used for the sale, which was made possible via the Public Works Loan Board. It is expected that the investment will allow us to deliver £328,000 of our targeted £600,000 annual savings.
We signed off our Commercial Property Investment Strategy earlier this year as part of our plan to achieve the required £5 million budget savings in the next three financial years while still allowing for the efficient delivery of services to the public. The strategy provides a strong and viable framework for acquiring commercial property investments and pursuing redevelopment and regeneration opportunities that can deliver positive financial returns.
Cllr Derek Bastiman, Leader of Scarborough Borough Council said:
"This is our first major investment aligned with our Commercial Property Investment Strategy and I am delighted that the sale has been completed. With Scarborough’s previous accolade of being the country’s most visited place outside London for overnight domestic stays, the purchase of the Travelodge Hotel building presented us with an ideal opportunity.
"Moving forward, we are very much open to exploring other investments in our drive to achieve a balanced budget and we will continue to actively seek suitable opportunities."
We were advised on the sale by Edgerley Simpson Howe and NJB Hotels & Leisure Property, as well as our own Estates and Legal teams.