Standard Life Assurance has acquired a Premier Inn in the heart of Birmingham's business district for £26.55m.
The 152-bed hotel with 8 floors features a ground floor 80-cover Beefeater Block restaurant and bar, which has recently received a makeover.
Bought from a syndicate of private investors represented by Downing, and let to Premier Inns Hotels Ltd, the hotel was fully refurbished in 2010
Mark Johnson, a director of MK2, which advised the vendor, said the deal has set a new benchmark for regional hotel yields, “The price reflects a net initial yield of 4.12%. By agreeing a 20-year lease extension with Premier Inn on sale we were able to achieve maximum value for the asset and our client.
“The sale 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.”
