Published on : Thursday, August 17, 2017
The Standard Life Assurance has acquired the city hotel with the 152-bedroom Premier Inn in Waterloo Street from a syndicate of private investors. Mark Johnson, a Director of MK2 Real Estate advised the seller and said that the deal had set the new benchmark for the regional hotel yields.
Mark Johnson also said that the price of this regional hotel reflects a net initial yield of 4.12 per cent. It is by agreeing a 20-year lease extension with Premier Inn on sale, they were able to achieve maximum value for the asset and our client.
The sale of Premier Inn attracted lots of interest with a number of institutional investors competing to secure the deal and bidding significantly ahead of the asking price. This demonstrates confidence in Birmingham and the booming hotel sector. Mark Johnson also marked that in near future, Birmingham will be the best place for hotel industry.
This seven-floor hotel is let to Premier Inn until 2037 and has the 80-seat Bar + Block restaurant on the ground floor. BNP Paribas advised the Standard Life on the acquisition and the seller was also represented by Downing.