TRAVELODGE 73 HOLLYBUSH HILL, , E11 1PE

LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP SNARESBROOK TRAVELODGE, 73 HOLLYBUSH HILL, LONDON, E11 1PE

INVESTMENT CONSIDERATIONS PROPOSAL

■ Attractive purpose-built hotel ■ 5 yearly uncapped RPI linked reviews Offers sought in excess of £2,100,000 (Two Million and One Hundred Thousand Pounds) providing 24 rooms totalling subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield ■ Excellent potential to provide an alternative 7,303 sq ft (GIA) of 6.00% assuming standard purchaser’s costs and a low capital rate of only £288 psf. residential focused use, subject to necessary ■ 4min walk from Snaresbrook consents Yield profile assumes 2.5% uplifts per annum Underground Station, providing ■ Residential studio rents in the area achieving Central Line services £700 Review Date Running Yield pcm (£8,400 p.a.) which potentially could provide ■ 1.3 miles from Junction 4 of the M11 a total income for the property of £201,600 per 2025 6.79% Motorway annum assuming they were let on this basis 2030 7.68% ■ Let to Travelodge Hotels Ltd on ■ Residential sales are achieving £550 psf 2035 8.69% an FRI lease expiring on 16/07/2038 in the area (no breaks) ■ Long Leasehold. 225 years from 10/08/2010, ■ Unexpired term of 17.7 years DATAROOM providing an unexpired term of 215 years at For access to the Allsop Marketing Data Room, please use the following link: ■ Passing rent of £134,151 per annum a ground rent of £10 per annum. https://datarooms.allsop.co.uk/register/travelsnaresbrook

LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP A505 Stevenage Dunstable Stansted A120 A418 LUTON A5 A10 A602 M1 A1(M) A44 A131 A130 A34 SNARESBROOK Harpenden Hertford A40 TRAVELODGE, 73 HOLLYBUSH HILL, LONDON, E11 1PE A414 M11 A41 Hemel A12 OXFORD Hatfield Harlow Hempstead St Albans A4142 Thame M10 A138 A414 A420 J21 A414 A404 Chipping A4010 Chesham J20 Epping J23 Ongar J19 J25 M25 J27 High Borehamwood M25 Watford Enfield Wycombe A355 A1 M1 M11 A130 Beaconsfield A10 Woodford Billericay A413 Green J28 Wickford M40 Harefield A404 J2 SNARESBROOK A127 A12 J29 Marlow Ruislip Basildon J16 Wembley Hampstead Romford Hurley Uxbridge A40 Southend-on-Sea A34 Maidenhead Canvey A13 M25 Island A404(M) Southall LONDONLondon Eton J15 M4 City Windsor Hounslow A2 READING Clapham M4 Heathrow Dartford A329(M) Ashford Gravesend Sheerness Egham Kingston Bracknall A20 J2 Upon Thames Ascot Bromley LOCATION J12 M3 A23 A322 J3 Rochester Gillingham Snaresbrook is an attractive and affluent area of The surrounding area isWalton-on-Thames one of the most highly sought after living environmentsCroydon in London with a large number A21 of parks and open spaces. A232 M2 in the London Borough of Redbridge. The town is Sutton M25 M20 Sandhurst M25 Snaresbrook benefits from excellent road communicationEpsom links being situated between the A12 and A10 which Sittingbourne strategically located just inside the North Circular, 8 miles Snodland provide direct access on to theJ10 M11 Motorway and A406A217 North Circular. Snaresbrook Underground station is east of . Woking Biggin Hill A339 situated on the Central Line and provides direct access to Liverpool StreetA22 Station and the J9 J5 M26 M20 M3 West End of London. All of London’s airports are easily reached via the M11 and M25 London Orbital. BASINGSTOKE Fleet M25 A331 A3 Maidstone J8 J7 J6 A34 Oxted Aldershot Reigate A26 GUILDFORD Redhill Famham A21 A24 M23 Tonbridge A303 Godalming ROAD RAIL Horley AIR Paddock Royal Wood Staplehurst Gatwick Alton A12 Witley0.7 miles Bank Station 20 minutes London City 10.0Tunbridge miles Cranleigh Wells A10 4.8 miles Oxford Circus 29 minutes Stansted Airport 26.1 miles A229 A31 M11 1.5 miles City Thameslink 29 minutes Three BridgesHeathrow Airport 27.8 miles M25 12 miles St Pancras International A26430 minutes Luton Airport 39.5 miles

Horsham

LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP A23 Haywards Heath SPORTS FACILITY

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SITUATION DESCRIPTION The property benefits from good road frontage to the The property is arranged over ground and first floors A1199 and is a short walk from Snaresbrook Underground providing a total of 24 en suite bedrooms. The hotel benefits Station and High Street. The property is situated from shared car parking with the adjoining public house. adjacent to Toby Carvery opposite Flats. Occupiers on the High Street include Tesco, Co-Op and TENURE Nationwide as well as numerous boutique shops, cafés Leasehold. 225 years from 10/08/2010, providing and restaurants with an attractive village green. an unexpired term of 215 years at £10 per annum.

© Crown Copyright, ES 100004106. For identification purposes only.

ACCOMMODATION & TENANCY SCHEDULE

Tenant Floor Area GIA Lease Start Lease Expiry Rent Review Passing Rent £ pa (sq ft)

Travelodge Hotels Limited Ground 3,697 10/08/2010 16/07/2038 (17.7 years remaining) 10/08/2025 £134,151 (£5,589 per room) First 3,606

Total 7,303 £134,151

Subject Property Demise ––––––– Mitchells & Butlers Demise (excluded from sale) –––––––– LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP SNARESBROOK TRAVELODGE, 73 HOLLYBUSH HILL, LONDON, E11 1PE

COVENANT KEY STATISTICS (FY 2019)

588 44,832 80.6% Hotels Rooms Occupancy KEY HIGHLIGHTS Travelodge Hotels Limited • UK’s second largest hotel brand based on number of hotels and rooms

• Positioned in the attractive value segment £51.82 £41.75 £727.9m with 588 hotels and serving 19m business ADR RevPAR Revenue and leisure customers

• Well invested modernised hotel portfolio

• Well balanced approximately even business / leisure customer split £ 3 37. 8 m £129.1m 1.6x • Almost 90% booking direct, with c. 80% £129.1m EBITDAR EBITDA Rent Cover through own websites EBITDA • Low upfront capex leasehold model

2020 TRAVELODGE CVA TRAVELODGE UK HOTEL DISTRIBUTION (AS OF MARCH 2020) On 19/06/2020, Travelodge creditors voted to INTERNATIONAL approve a Company Voluntary Arrangement (CVA) to restructure leases, to enable Travelodge to London Regions Spain Ireland navigate the short-term challenges faced as a business as a result of the COVID-19 situation. • 76 hotels • 498 hotels • 5 hotels • 11 hotels 06/11/2020 Travelodge has confirmed that its share- • 9,802 rooms • 33,756 rooms • 621 rooms • 858 rooms holders will go ahead with the £30m equity contribution. • 22% of total rooms • 75% of total rooms • 1% of total rooms • 2% of total rooms

LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP SNARESBROOK TRAVELODGE, 73 HOLLYBUSH HILL, LONDON, E11 1PE

FLOORPLANS

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Subject Property Demise ––––––––

LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP A505 Stevenage Dunstale Stansted Luton A120 A418 A5 A10 A602 1 A44 A131 A130 A34 Aylesury SNARESBROOKHarpenden TRAVELODGE, 73 HOLLYBUSH HILL, LONDON, E11 1PE Hertford A40 A414 A41 Harlow A12 Thame A4142 Chelmsford 10 1 A420 1 11 A414 Chipping A4010 A404 Chesham 0 A10 Epping Ongar 19 5 5 Borehamwood 5 A355 Watford A1 1 A130 Beaconsfield A12 Billericay £480 PSF A413 0 Harefield A404 SNARESBROOK £550 PSF A127 9 arlow Ruislip Basildon 1 Hampstead Wemley £500 PSF Hurley xridge A40 Southend-on-Sea A34 Canvey Slough A13 5 Island SouthallLONDON London Eton 15 City Windsor Hounslow A2 Clapham Heathrow Dartford 9 Ashford ravesend Sheerness Egham ingston A20 pon Thames 1 *Psf rates based of an average flat size of 700 sq ft. A23 A322 Rochester illingham Walton-on-Thames Croydon A232 A21 FUTURE DEVELOPMENT SNARESBROOK RESIDENTIAL RESIDENTIAL SALES MARKET 5 0 5 Sutton POTENTIAL MARKETSandhurst OVERVIEW Epsom Sittingourne There is currently no new build stock available in Snaresbrook due to restricted development supply. Snodland 10 A217 Strong residual value with excellent future Redbridge Local Authority has consistentlyWoking Biggin Hill A339 Average A22House price growth Average price growth redevelopment potential. under-delivered against its housing targets 9 0 Flat Price over last five years 5 5-year forecast since 2007/08. Snaresbrook is a popular Fleet 5 A331 A3 aidstone urban conurbation bounded by several The current target is 1,123 homes per £385,000 (£550 psf) 41% 17% Oxted A34large green spaces including Leyton Flats, annum with a limited current supply of Aldershot Reigate A26 ILDFORD and Gilbert’s Slade. development sites. Dorking Redhill The property comprises a purpose built The Local PlanningFamham Authority has A21 A24 EXISTING RENTAL ASSETS ON THE hotel investment within an established implemented a strategy of proactive RESIDENTIAL LETTING MARKET Tonridge A303 odalming MARKET ARE COMMANDING RENTAL residential area directly neighbouring engagement with developers and Horley LEVELS IN THE REGIONPaddock OF: The residential letting market in Snaresbrook is strong at present Royal a Toby Carvery. landowners. Wood Staplehurst with 1 bedroom studio flatsatwick renting for £8,400 per annum. The Alton Witley Tunridge Given the nature of the construction and 4th highest projected percentage Cranleighexisting accommodation which provides 24 rooms could relatively Wells already highly efficient internal layout, the increase in population, amongst easily be converted to 24 studio apartments subject to obtaining A229 A31 Crawley Studios One Beds property would lend itself to alternative English Local Authorities. the necessary consents. 24 studio apartmentsThree could Bridges potentially £700 pcm £950 pcm uses, including residential, subject to the A264 Ambitious plans are underway to redevelop provide a total rent of £201,600 per annum. Two Beds necessary consents. Redbridge’s main town and administrative We are also aware of a number of local authorities and social £1,950 pcm Horsham centre; , driven by the arrival of three housing providers who would also consider renting the entire new Elizabeth Line stations. property in order to fulfill their social housing needs.

A23 Haywards Heath LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP EPC The property has an EPC rating of C(52).

VAT The property is elected for VAT and it is anticipated that the transaction will be treated as transfer of a going concern (TOGC).

ANTI-MONEY-LAUNDERING A successful bidder will be required to provide information to satisfy the AML requirements when Head of Terms are agreed.

DATAROOM For access to the Allsop Marketing Data Room please use the following link: https://datarooms.allsop.co.uk/register/travelsnaresbrook

PROPOSAL Offers sought in excess of £2,100,000 (Two Million and One Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6.00% assuming standard purchaser’s costs and a low capital rate of only £288 psf.

Yield profile assumes 2.5% uplifts per annum

Review Date Running Yield 2025 6.79% 2030 7.68% 2035 8.69%

For further information or to make arrangements for viewing please contact:

National Investment Lottie Hayward Andrew Wise 07817 549 237 07535 045 149 [email protected] [email protected] 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 11.20