Joint developers Realis Estates and Wykeland Group have sold the new Travelodge hotel in Hull city centre to a private organisation, for a figure approaching £4.5 million, reflecting a net initial yield of 6.5%.
Located at the junction of Freetown Way and Pryme Street, the investment comprises the 80-bed Travelodge, which opened on 13 May 2011, together with a 29-space car park let to Town & City Parking Ltd. The investment generates a total annual income of approximately £300,000 per annum subject to 5-year reviews.
Dominic Gibbons, Managing Director of Hull-based Wykeland said: “We are delighted with the early sale of this property, which was agreed prior to the completion of the build. Working with Realis we have successfully created an attractive and prominent development, which has improved the overall fabric of the area.”
Realis Estates Managing Director Duncan Mathieson added: “I knew we had a great opportunity right from my initial introduction to the site from Wykeland and through our successful partnership we have worked together to bring a great project to fruition.”
Hague Nicholls advised Realis Estates and Wykeland Group on the sale. Neil Frais Kelly and Paul Hanison represented the purchaser.