LaSalle acquires Travelodge adjacent to Euston Station, London
LONDON (September 17, 2018) — LaSalle announces the acquisition of a Travelodge hotel adjacent to Euston station; this is a 150-room budget hotel located at Grafton Place in central London. The freehold asset was acquired from a syndicate of private investors for £40 million.
The hotel provides 150 bedrooms across a gross internal area of over 40,000 square feet. It is understood to be one of the best performing hotels within the Travelodge portfolio. Located in an area due to undergo major redevelopment, the property ranks highly on LaSalle’s proprietary analysis of an asset’s long-term resilience to changes in demographics, technology, urbanisation and the environment.
The hotel, which is single-let to Travelodge Hotels Ltd until 2043 with rent linked to inflation, is situated next to London Euston, one of the UK’s main transport hubs and the site of London’s forthcoming “HS2” high-speed rail connection to the West Midlands as well as a potential future site for Crossrail 2. The area around Euston station and the nearby King’s Cross station is undergoing one of the largest urban regeneration projects in Europe.
The branded budget sector is the fastest growing hotel market in the UK, helped by the weaker pound since the Brexit referendum that has made it cheaper for international tourists to visit the UK and more expensive for Britons to holiday abroad.
Sophie Simmonds, Fund Manager at LaSalle Investment Management, said: “We’re pleased to have originated and completed this off-market acquisition, which meets our investment criteria of investing in long-let, index-linked assets in strong locations. There are a number of very strong medium- and long-term drivers that contribute to the asset’s attractive return profile over the remaining lease term. These include the devaluation of sterling encouraging both foreign visitors and permanent residents to holiday in the UK, London’s established position as one of the world’s leading hotel markets and the major redevelopment of Euston planned over the coming decade.”
Alan Tripp, Head of UK at LaSalle Investment Management, said: “I am happy that we can announce this acquisition in an excellent location close to Euston station. This is the latest of a number of inflation-linked assets that we have acquired; meeting strong demand from our clients to assist them with their liability matching investment strategies.”
The private vendors, represented by James Routledge of Matthews & Goodman, originally identified the asset as having strong growth potential due to the strength of the location, which they were pleased to have realised having funded the development in 2008.
LaSalle were represented by John Miles & Company and Gerald Eve.
About LaSalle Investment Management
LaSalle Investment Management, Inc. (together with its global investment advisory affiliates, “LaSalle”) is one of the world’s leading real estate investment managers. LaSalle on a global basis manages approximately $60.5 billion as of Q3 2018 of private and public equity and private debt investments. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. LaSalle Investment Management, Inc. is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Incorporated (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit www.lasalle.com.
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