Premier Inn, 2-6 Waring Street, Belfast, BT1 2DX

  • £12,750,000
2-6 Waring Street, Belfast, BT1 2DX
For Sale Sale Agreed

Premier Inn, 2-6 Waring Street, Belfast, BT1 2DX

2-6 Waring Street, Belfast, BT1 2DX
  • £12,750,000

Description

FOR SALE – PRIME LONG LET HOTEL INVESTMENT

 

Key Benefits
  • The subject property is situated on a prominent corner site facing the junction of Waring Street and Donegall Street in the Cathedral Quarter. Cathedral Quarter is one of the oldest parts of Belfast and is considered the premier destination for entertainment and arts in the city centre.
  • The subject property is only a few minutes’ walk from Belfast’s prime retailing core and is within close proximity to St Anne’s Square, The MAC, the 5-star Merchant Hotel and the new Ulster University campus.
  • The building comprises a six-storey 171 en-suite bedroom hotel with 5 meeting rooms, 200-seater bar/restaurant and 35 space basement car park. The subject property was constructed in 2008 behind a Grade B2 listed façade. There are two additional self contained retail units situated to the rear of the hotel on Warehouse Lane.
  • The hotel is let to Premier Inn Hotels Limited on a 25-year lease from 1st March 2013 to 28th February 2038 (16.3 years unexpired) at a current passing rent of £645,108 per annum reflecting a low passing rent of £3,773 per room. The lease is subject to 5 yearly rent increases to CPI capped at 4% per annum compound. At the current CPI indices (Nov 2021) the rent would be reviewed to c.£700,000 pa. Assuming 2% CPI until next review the rent could potentially be reviewed to c.£715,000 pa.
  • Unit 1 Warehouse Lane is let to Brewery Restaurants Limited t/a The Muddlers Club until the 6th September 2025 at a current passing rent of £20,800 per annum.
  • Unit 2 is currently under offer with a vendor’s rental, vacant rates and insurance guarantee. The rental guarantee reflects £30,000 per annum.
  • Total gross passing rent of £695,908 per annum and potentially reversionary to £765,800 per annum in March 2023.
  • The net income for the property is £695,250 per annum after ground rent (£210 pa) and Art installation insurance shortfall (£448 pa).
  • Premier Inn is the UK’s largest hotel brand, with more than 79,000 rooms and 800 hotels. They operate hotels in a variety of locations including city centres, suburbs and airports. Premier Inn Hotels Limited is a wholly owned subsidiary of the Whitbread Group Plc whose other brands include Bar+Block, Hub by Premier Inn, Beefeater and Brewers Fayre. Premier Inn Hotels Limited have a CreditSafe rating of 86/100 which reflects “Very Low Risk”.
  • The Mudders Club was founded in 2015 and is regarded as one of Northern Irelands top ranked restaurants having been awarded a Michelin Star in 2020. Brewery Restaurants Limited have a CreditSafe rating of 38/100 which reflects “Moderate Risk”.
  • The property is held long leasehold for a term of 999 years from 22nd December 2006 subject to a nominal ground rent of £210 per annum from the Department for Communities.
  • We are instructed to seek offers over £12,750,000 (Twelve Million Seven Hundred and Fifty Thousand Pounds) for our clients long leasehold interest, excluding VAT. A purchase at this level would reflect a net initial yield of 5.11% and potential reversionary yield in March 2023 to 5.63% assuming purchasers’ costs of 6.72%.

 

Description

The property comprises a hotel, constructed in 2008 behind an original 1870’s Grade B2 listed façade (Listed Building Reference: HB26/50/246), comprising 171 no. en-suite bedrooms including 5 no. meeting rooms and 200 no. seater bar/restaurant. The building is arranged as a block with another annexed block to the side onto Warehouse Lane, accessed by a bridge on floors 1 to 5.
The property benefits from a 35-space basement car park and two self-contained units to the rear facing onto Warehouse Lane at the ground floor of the annex extension. Bedrooms are provision on floors 1 to 5 only with 2 guest passenger lifts (8 person) and a staff passenger lift.

There are two additional retail units situated to the rear of the Hotel on Warehouse Lane. Unit 1 is let to Muddler Clubs and has been fitted out for their use. The unit is currently being refurbished. Unit 2 is currently under offer (further information available upon request) and is currently fitted to a shell condition.

The property was developed in 2008 to form a 171-bedroom Premier Inn Hotel with 200-seater restaurant and bar and two self-contained units fronting onto Warehouse Lane. As part of the development the historic facades on Waring Street and Donegall Street were retained and repaired. In addition Warehouse Lane was restored and the link between Waring Street and Exchange Place was reinstated.

The property comprises of two parts, the main block and the annex. The main block is a 7-storey high combined concrete and steel framed building bounded to the south west by Donegall Street and to the South East by Waring Street. The Annex is 5 storeys high, steel framed structure with composite concrete floors and is located to the rear, to the north east of the main block. Both blocks are connected below ground via the basement carpark. The annex is separate from the main block above ground level but is accessed via a link bridge. The bridge crosses the service lane (Warehouse Lane) which is accessed off Waring Street and leads to the basement carpark ramped entrance.

The hotel guest accommodation is located on upper floors with the main structure facilitating 127 rooms and the annex facilitating a further 44 bedrooms. The 6th floor of the main structure accommodates all meeting/conference rooms with break out area and WC facilities also provided. Accommodation to the ground floor of the main structure includes the kitchen, main bar/restaurant, and reception areas. Back of house areas are also located on the ground floor including storage, staff areas and managers office. The hotel benefits from a basement accessed off Waring Street via Warehouse Lane, the basement provides 35 car parking spaces.

The main entrance to the hotel is located off Waring Street via modern automated double doors. The main entrance is provided with a level access, the reception is located to the right side of the main lobby, with bar/restaurant located to the left side. Bedroom accommodation has been finished to Premier Inns specification. All bedrooms have ensuite facilities and have full air conditioning. The majority of the AC plant is located at roof level with main boiler house and tank room located at 6th Floor level. The bedrooms and conference rooms are provided with a combined heating and cooling AC system. The corridors and stairs are provided with electric convector heaters as is the back of house areas on the ground floor. Reception and bar areas are heated and cooled via the main AC system also. The basement has no heating or cooling but does have a fume extraction and ventilation system.

Property Documents

Premier Inn Brochure - Final
Hotel - EPC
Unit 1 - EPC
Unit 2 - EPC
  • Address 2-6 Waring Street, Belfast
  • City Belfast
  • Zip/Postal Code BT1 2DX

Details

Updated on February 28, 2022 at 2:06 pm
  • Price: £12,750,000
  • Bedrooms: 171
  • Property Type: Investment
  • Property Status: For Sale

Energy Class

  • Energetic class: C
  • EPC Current Rating: 66
  • A+
  • A
  • B
  • | Energy class C
    C
  • D
  • E
  • F
  • G
  • H

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