Property overview

Premier Inn, Marcham Road, Abingdon, OX14 1TU

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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.