Premier Inn, Marcham Road, Abingdon, OX14 1TU
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£11,200,000
Sep 2023
Atlas Real Estate has advised on the sale of a new Premier Inn hotel development on behalf of Hinton Group.
The property is located on Marcham Road in Abingdon, close to the junction with the A34, and comprises a new 86 bed Premier Inn Hotel.
The hotel is let to Premier Inn Hotels Ltd, guaranteed by Whitbread Group Plc, for a term of 25 years from August 2023. The lease is subject to 5 yearly upward only reviews to CPI collared at 1% and capped at 4% per annum compounded. The commencing rent is £473,000 per annum (£5,500 per room).
The development funding sold for £11,200,000 which reflects a net initial yield of 4.00%.
Alternative Real Estate Advisors represented the purchaser, Knight Frank Investment Management.
