Premier Inn, Swan Road, Lichfield, WS13 6QZ
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Franck Steier Price has recently completed the acquisition of a modern purpose built 79 bedroom budget hotel in Lichfield city centre.
The property occupies a prominent position at the island junction of Swan Street and The Friary, a short distance to the south west of Lichfield’s pedestrianised retail core.
The property forms part of the £14 million Friary Outer development comprising a 414 space multi storey car park, the Premier Inn, a restaurant, 54 supported living houses and a number of other residential units. The development was completed in 2013/2014.
The property is held long leasehold for a term of 250 years from May 2014 at a peppercorn and is let to Premier Inn Hotels Limited for a term of 25 years from 21st July 2014 (tenant only break option at 20th year of lease). Rent reviews are on the basis of compounded CPI (collar of 1% and cap of 4%). The current passing rent is £316,000 per annum.
The purchase price of £6,245,320 reflected a net initial yield of 4.75% after purchaser’s costs of 6.64%. The anticipated reversionary yield is c 5.17%.
Atlas Real Estate represented the purchaser Christian Vision and the vendor Aprirose were represented by Savills.
