TRAVELODGE BRIDGE STREET, NEWPORT, NP20 4AP

FREEHOLD HOTEL INVESTMENT

LET TO TRAVELODGE HOTELS LTD WITH 17.2 YEARS UNEXPIRED TRAVELODGE BRIDGE STREET, NEWPORT, NP20 4AP

STATION QUARTER PHASE 2

Outline for indicative purposes only.

INVESTMENT SUMMARY • Freehold Hotel Investment • Let to the strong covenant of Travelodge • Offers in excess of £3,475,000 (Three Million, • Located adjacent to Newport Rail Station Hotels Ltd (D&B rating: 5A2) benefitting Four Hundred and Seventy Five Thousand Pounds) with good access to from 17.2 years unexpired subject to contract and exclusive of VAT. A purchase and the . • Current passing rent of £249,897 per annum at this level reflects an attractive net initial yield of 6.75% (assuming purchaser’s costs of 6.50%). • 62 bedrooms. 19,432 sq ft (1,805.3 sq m) • Lease subject to five yearly uncapped RPI indexed rent reviews TRAVELODGE BRIDGE STREET, NEWPORT, NP20 4AP

Friars Walk Shopping Centre

Friars Walk Shopping Centre

se lo C t eet A Greatoo Str s F cke 4 t o 1 ol Malvern L 0 9 e C 4 lac A4103 2 5 e P scent 4 c A438 A449 rk’s Cre en a B r A470 A438 Hereford A438 St M Cla LOCATION 96 A4172 B45 A483 eet Str R Mill o d ad n A49 lds Ro e Newport is a Cathedral and University City in the unitary authority of Newport, in south Fie y A438 A449 R o M50 a A40 Brecon A479 A417 d east . The City is located 22.5 km (14 miles) east of 50 km (31 miles) s Gold Top A40 A40 A465 Ross-on-Wye north west of Bristol and 9.6 km (6 miles) south of Cwmbran. The City has a population of A4137 al Park A40 tion Brecon Beacons Na GLOUCESTER y ace a A470 A40 G n Pl w approximately 139,000 with a shopping catchment of approximately 310,000 people. A40 od evo s A483 n fre D en est of Dea y R e For oa u A465 d Q A48 Merthyr 91 Newport benefits from good road communications with access to junctions 26, 27 Tydfil 45 A4042 B

A and 28 of the M4 connecting to Cardiff to the west and Bristol to the east. A48 4 A465 Pontypool A449 reet ill 0 tion St w H 4 Sta to 2 S M4 M5

Neath Newport Railway Station provides regular services to Cardiff Central, Bristol and London Cwmbrân Rd d treet Swansea el idge S M48 fi Br Paddington with a fastest journey time of 15 minutes, 20 minutes and 113 minutes Pontypridd ak Port Talbot O A470 Caerphilly NEWPORT M4 respectively. A433 4591 A403 B Chipping East Street M49 A470 A48(M) Sodbury M4 A48

Avonmouth M4 B

Pontshead M32 a Cardiff airport is located 40 km (25 miles) south west of Newport and is accessible via CARDIFF N

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e t o y e the M4. Cardiff airport has one terminal which sees over 1.9 million passengers per r S Penarth a r t e o r M5 w c e t a r S s l e e r r t t L e Cardiff r e

h A4 t t a i S l T t e e l Bristol A4 i n n T t w t Barry A38 t r e a l r e l l H e year travel to over 60 regular destinations. e L e B A37 1 n e b w l BATH 9 n t o u A t 5 T A38 4 S Weston-super-Mare B

T a lb o t L a n e TRAVELODGE BRIDGE STREET, NEWPORT, NP20 4AP

SITUATION The property is situated on the northern side of Bridge Street, adjacent to its junction with Station Street and within a 5 minutes walk of Newport retail centre including Commercial Street and the recently completed Friars Walk Shopping Centre.

The property is surrounded by a range of commercial and residential uses centred around the recently upgraded Newport Rail Station. Nearby occupiers include Admiral Insurance, Natwest, McDonalds, HSBC, Argos and Greggs.

Admiral House, situated adjacent to the property, comprises an 80,644 sq ft Grade A office accommodating approximately 1,200 staff. Planning consent has recently been granted to develop Phase 2 of the Station Quarter to provide a new Grade A office extending to 45,000 sq ft. Upon completion this will likely benefit the property with increased demand for hotel accommodation.

DESCRIPTION The property is a recently converted building with the accommodation arranged over ground and upper floors providing a total of 62 en-suite bedrooms. Part of the ground floor of the building has been sold off on a long lease.

The hotel benefits from customer parking facilities providing 11 car parking spaces accessed via Station Street. An additional 44 car parking spaces are available in the NCP Car Park, adjacent to the property.

TENURE SITE Freehold. Site area approximately 0.20 ha (0.49 acres).

ACCOMMODATION The property provides 62 bedrooms and the following Gross Internal Area (GIA): 19,432 sq ft (1,805.3 sq m)

TENANCY The property is let on full repairing and insuring terms to Travelodge Hotels Ltd for a term of 25 years from 13/02/2009 expiring on 12/02/2034 at a current rent of £249,897 per annum.

The property is subject to five yearly uncapped RPI indexed rent reviews with the next review due on 12/02/2019.

Part of the ground floor of the property including the restaurant and units 7, 9, 11 and 13 are sold off on a long lease. The long lease is subject to a term of 225 years at a peppercorn rent.

Sold off on Long Lease © Crown Copyright, ES 100004106. For identification purposes only. TRAVELODGE BRIDGE STREET, NEWPORT, NP20 4AP

COVENANT INFORMATION EPC Travelodge Hotels Ltd: D&B rating: 5A2 The property has been rated Grade C (70). The EPC Certificate is available on request. Founded in 1985, Travelodge is the UK’s first budget hotel brand and is now Britain’s only independent hotel chain. The company is the second largest hotel brand in the UK with 30.4% of the UK budget hotel sector and as of January 2016 VAT the chain operates 526 hotels and 38,000 rooms across the UK, Ireland and Spain. The property is elected for VAT and it is anticipated that the transaction will be treated as transfer of a Travelodge has recently undertaken a successful refinancing going concern (TOGC). and the proceeds of the new arrangements have allowed Travelodge to repay all their existing bank loans on 10 May 2016, which were due in 2017 and 2018. This extends the maturity of Travelodge’s debt, giving the company room to operate and greater flexibility.

Company accounts, D & B and Riskdisk Ratings are available on the dataroom. Key performance details are as follows:

UK like for like Key 2015 2014 Growth Performance Indicators Occupancy 76.6% 75.6% 1.0 pts Average room rate £50.19 £45.53 10.2% Revenue Per Available Room £38.44 £34.42 11.7% EBITDA £101.9m £62.8m 62.3% Operating Profit* £64.1m £32.4m 98%

*Before exceptional items. TRAVELODGE BRIDGE STREET, NEWPORT, NP20 4AP

Proposal Offers in excess of £3,475,000 (Three Million, Four Hundred and Seventy Five Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 6.75% (assuming purchaser’s costs of 6.50%).

For further information or to make arrangements for viewing please contact: DATAROOM Jeremy Hodgson Mark Dansky Tom Dales 020 7543 6709 020 7543 6813 020 7543 6866 For access to the Allsop Dataroom please use the following link: http://datarooms.allsop.co.uk/register/newtravel [email protected] [email protected] [email protected] Existing users can log in to the dataroom site and register using access code: newtravel www.allsop.co.uk

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD www.commandHQ.co.uk 11.16