Premier Inn, 23 Alfred Street, Belfast, BT2 8ED

  • £9,930,000
Featured For Sale
23 Alfred Street, Belfast, BT2 8ED
Featured For Sale

Premier Inn, 23 Alfred Street, Belfast, BT2 8ED

23 Alfred Street, Belfast, BT2 8ED
  • £9,930,000

Description

FOR SALE – PRIME LONG LET HOTEL INVESTMENT 

 

Investment Summary
  • Belfast, the capital of Northern Ireland is the 12th largest city in the United Kingdom and the 2nd largest on the island of Ireland. The city is located approximately 165 km (103 miles) north of Dublin and 120 km (75 miles) south east of Derry-Londonderry.
  • The hotel is situated on Alfred Street in the Linen Quarter. Linen Quarter is the area to the South of Belfast City Hall and would be regarded as Belfast’s main Central Business District with numerous hotels, pubs and restaurants.
  • The property is only a few minutes’ walk from Belfast’s prime retailing core and is within close proximity to Lanyon Place Railway Station, Great Victoria Street Train Station and Europa Bus Station.
  • The building comprises a 148 en-suite bedroom hotel with bar and restaurant set over ground and eight upper floors. The hotel was constructed in 2006 and includes a retail unit fronting onto Alfred Street occupied by Poppogoblin which is being retained by the vendor.
  • The hotel forms part of the Adelaide Exchange complex which comprises approximately 140,000 sq ft of grade A office accommodation and 180 space underground car park.
  • The hotel is let to Premier Inn Hotels Limited (guaranteed by Whitbread Group Plc) until 13th August 2037 (15.17 years unexpired) at a current passing rent of £529,618 per annum reflecting a passing rent of £3,578 per room.
  • Premier Inn’s lease is subject to 5 yearly rent increases to CPI capped at 4% per annum compounded. At the current CPI indices (April 2022) and then assuming 3% CPI until next review (14th August 2026) the rent could potentially be reviewed to c.£620,000 per annum.
  • Premier Inn is the UK’s largest hotel brand, with more than 82,000 rooms and 820 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 and Whitbread Group Plc have a CreditSafe rating of 86/100 which reflects “Very Low Risk”.
  • The property is held long leasehold for a term of 800 years from 14th September 2007 subject to a nominal ground rent of £1 per annum from Straben Development Limited.
  • We are instructed to seek offers over £9,930,000 (Nine Million Nine Hundred and Thirty Thousand Pounds Sterling) for our clients long leasehold interest, excluding VAT. A purchase at this level would reflect a net initial yield of 5.00% and a potential reversionary yield of 5.85% (assuming rent of £620,000 per annum) in August 2026 assuming purchasers’ costs of 6.69%.​​​​​​​

 

Description

The property was constructed in 2006 comprising 148 en-suite bedroom hotel with bar and restaurant set over ground and eight upper floors. The ground floor comprises an open plan reception, bar and restaurant with access and egress via both Alfred Street to the front and Adelaide Street to the rear. Back of house areas on the ground floor include offices, stores, and goods in/out areas. Upper floors are used as guest accommodation.

The building is of traditional construction with blockwork walls, precast concrete flooring and a steel frame. Walls on the ground floor are primarily comprised of double-glazed units. Upper floors are “duplicated” with guest rooms accessed from a central corridor. There is an additional retail unit situated to the front of the Hotel on Alfred Street which is being retained by the vendor.

The property forms part of the wider Adelaide Exchange scheme which in addition to the hotel comprises 140,000 sq ft of grade A specification open plan offices arranged over ground and 8 upper floors, a high-quality landscaped courtyard to the rear and basement car parking for 180 cars. Tenants within Adelaide Exchange include Applied Systems, Bespoke Managed Space, Liberty IT, VELA, Genpact Pharmalink, Blackduck and Compare NI.

The property sits on a site of approximately 0.2 acres.

Property Documents

Brochure
EPC - Premier Inn
  • Address 23 Alfred Street, Belfast
  • City Belfast
  • Zip/Postal Code BT2 8ED

Details

Updated on July 18, 2022 at 4:00 pm
  • Price: £9,930,000
  • Rooms: 148
  • Year Built: 2006
  • Property Type: Hotels, Investment
  • Property Status: For Sale

Energy Class

  • Energetic class: C
  • EPC Current Rating: 52
  • A+
  • A
  • B
  • | Energy class C
    C
  • D
  • E
  • F
  • G
  • H

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