Blackpool Travelodge gets £10m price tag

The 124-bedroom Travelodge on Seasiders Way is up for sale for £9.7m after its owner was ordered to divest its assets by the High Court.

South Shore Travelodge, built in 2008, is let to the hotel chain with 14 years remaining on its lease, with CPI-linked rent reviews every five years. A purchase at the guide price of £9.68m would reflect a net initial yield of 5.5%.

Lambert Smith Hampton has been instructed to list the hotel for open market sale, following a 2017 ruling which said the building’s owner, Blackpool Football Club Properties, must divest its assets following a £25m settlement with ex-director Valeri Belokon.

The Oyston family headed up the company before the football club was placed into receivership in February this year.

Hugh Anderson, director of hotels for LSH’s Manchester office, said: “We are currently experiencing strong activity in the hotel sector and anticipate good interest in this asset largely due to the strength of Blackpool’s tourist economy, the hotel’s location within the town and the guaranteed rental income from Travelodge.”