Date: April 2018
Location: Rougier Street, York, UK
Name: Malmaison – opening Q3 2019
No. of Keys: 150
Seller: Yorkshire House, a seven stroey vacant office building, acquired in December 2017 for £15.5m.
Buyer: Lothbury Investment Management, on behalf of its Lothbury Property Trust, it will fund the development of the hotel.
The scheme’s completed development value will be £44m, reflecting a net initial yield of 4.54%. Malmaison has agreed to a 35-year lease with RPI-linked rent reviews every five years.
“This is a major investment that provides almost certain rental growth in line with inflation,” said Mark O’Mullane from Lothbury Investment Management.
“It also increases Lothbury Property Trust’s exposure to the hotel sector, which fulfils a long-standing objective to acquire another hotel to complement our existing Tigerlily Hotel Edinburgh hotel, acquired in 2010 for £9.6m by Montague Evans, on their behalf. It also improves the average weighted unexpired lease term of the fund.”
Additionally Lothbury acquired the Travelodge in London’s Union Street, Southwark for £56.3m, in February 2018.
Development will start in the spring 2018.
Price per Key: £293,333
THPT Comment: Malmaison, under the new ownership of Frasers Hospitality, continues the growth path in the UK…wonder when they will venture into the rest of Europe? and a new entrant into the ownership stakes, with Lothbury.
First Seen: Property Week