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Goldman consortium puts UK Travelodge portfolio up for sale

By Paul Norman - Thursday, May 10, 2018 15:00

The Grove consortium is bringing to market 18 Travelodge hotels across the UK, CoStar News understands.

Market sources this week said CBRE has been appointed by Grove to market the portfolio for £47m.

Travelodges included in the portfolio comprise hotels in Skipton, Barton Mills and Thame.

The portfolio is understood to form part of the Grove portfolio of hotels which was marketed for consensual sale via CBRE by Prestbury, Tom Hunter’s West Coast Capital and the Reuben Brothers’ Aldersgate Investments. Lloyds Bank held an equity and legacy debt position.

The Grove consortium - Goldman Sachs and its partners US hedge funds Golden Tree and Avenue Capital - acquired Travelodge Hotels Ltd. in a debt restructuring in 2012 and subsequently agreed to buy the 144 UK hotels Grove portfolio leased to Travelodge in 2014 for circa £500m from Lloyds Banking Group, Prestbury Investment Holdings – a circa 15% investor in Secure Income REIT and its investment adviser - West Coast Capital and Aldersgate Investments.

In 2016 Secure Income REIT reached agreement to buy 55 of the Travelodge hotels for £196.2m financed by a proposed £140m share placing and a £60m seven year non-recourse secured debt facility agreed with M&G.

In March of this year Secure Income REIT bought a further 76 Travelodge hotels from the Golden Tree, Avenue Capital and Goldman Sachs private equity consortium.

That portfolio at the time had a weighted average unexpired lease term of 27 years with upwards only RPI linked rent reviews throughout the term. The acquisition price of £196.2m reflected a yield of 7%.

CBRE declined to comment.

pnorman@costar.co.uk

 

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