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LondonMetric Acquires Nine Premier Inn Hotels for £89 Million – Image Credit Whitbread
LondonMetric Property Plc has acquired nine Premier Inn hotels from Whitbread PLC for £89 million, adding 955 bedrooms to its portfolio under new 30-year leases.
LondonMetric Property Plc has completed the acquisition of nine Premier Inn hotels from Whitbread PLC for £89 million. The transaction reflects a net initial yield of 5.3% and increases LondonMetric’s portfolio of Premier Inn hotels to 22 properties.
The acquired hotels are located in the South East of England, specifically at Southampton Airport, Kings Langley, Milton Keynes, Poole, Colchester, Fareham, Waltham Abbey, Chipping Norton, and Warwick. The portfolio comprises 955 bedrooms.
The properties have been acquired on a sale-and-leaseback basis, with new 30-year leases in place. The annual rent generated by the portfolio is £5 million, with rent reviews linked to the Consumer Price Index every five years. According to LondonMetric, the leases provide what it describes as strong rent cover.
Following this transaction, Whitbread, through its Premier Inn brand, becomes LondonMetric’s fourth largest occupier, contributing £11.3 million in annual rent and accounting for 2.7% of the company’s total rent roll.
This acquisition follows LondonMetric’s previous purchase of a £44 million hotel portfolio from Whitbread. The company’s total ownership of Premier Inn hotels now stands at 22 properties.
No further details on operational changes or future development plans were disclosed.
