Ibis Budget Salford

Salford hotel sold for £12m

BP Pension Fund has bought the Ibis Budget hotel in Salford Quays for £12m, a net initial yield of 5.05%.

The 210-bedroom hotel on Trafford Road is let to Accor UK Economy Hotels, which holds a parent company guarantee on the property for 22 years from June 2008.

The property is held leasehold for 150 years from 20 March 2003 at a peppercorn rent. The current rent is £640,817, the equivalent of around £3,000 for each room.

BP Investment Management purchased the long leasehold investment on behalf of BP Pension Fund, advised by Hoddell Stotesbury Morgan and NJB Hotel & Leisure Property.

The hotel underwent a full refurbishment and rebranding last year from the Etap chain to Ibis Budget to bring it in line with the rebranding by hotel operator Accor.

The vendor was unrepresented.

Your Comments

Subscribe to our newsletter