TRAVELODGE SNARESBROOK 73 HOLLYBUSH HILL, LONDON, 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 Luton A120 A418 LUTON A5 A10 A602 M1 A1(M) A44 A131 A130 A34 Aylesbury 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 Chelmsford 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 SLOUGH 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 Wanstead 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 Charing Cross. 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 Dorking 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 Crawley 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 SNARESBROOK PRIMARY FOREST SCHOOL SCHOOL 3 SNARESBROOK1 1 A TRAVELODGE,L 73 HOLLYBUSH HILL, LONDON, E11 1PE L I H N O WANSTEAD 9 M 9 HOSPITAL R 1 E 1 H A SNARESBROOK ROAD D A O R D EAGLE POND R O F D O O 4 MINS TO STATION W H IG H S SNARESBROOK TR E E CROWN COURT T SNARESBROOK UNDERGROUND STATION 3 1 1 HOLLOW A EAGLE LANE D POND A E T S N A W W E N WOODFORD ROAD SNARESBOOK ROAD 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 Leyton 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) UNITED KINGDOM 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 GF FF Subject Property Demise –––––––– LONG INCOME HOTEL INVESTMENT WITH FUTURE RESIDENTIAL POTENTIAL STP A505 Stevenage Dunstale Stansted Luton A120 A418 LUTON A5 A10 A602 M1 A44 A131 A130 A34 Aylesury SNARESBROOKHarpenden TRAVELODGE, 73 HOLLYBUSH HILL, LONDON, E11 1PE Hertford A40 A414 A41 Harlow A12 OXFORD Thame A4142 Chelmsford M10 A1(M) A420 J21 M11 A414 Chipping A4010 A404 Chesham J20 A10 Epping J23 Ongar J19 J25 M25 J27 Borehamwood M25 A355 Watford A1 M1 A130 Beaconsfield WOODFORD GREEN A12 Billericay £480 PSF A413 J28 M40 Harefield A404 J2 SNARESBROOK £550 PSF A127 J29 arlow Ruislip WANSTEAD Basildon J16 Hampstead Wemley £500 PSF Hurley xridge A40 Southend-on-Sea A34 Canvey Slough A13 M25 Island SouthallLONDON London Eton J15 M4 City Windsor Hounslow A2 READING Clapham M4 Heathrow Dartford A329(M) Ashford ravesend Sheerness Egham ingston A20 J2 pon Thames J12 *Psf rates based of an average flat size of 700 sq ft. M3 A23 A322 J3 Rochester illingham Walton-on-Thames Croydon A232 A21 M2 FUTURE DEVELOPMENT SNARESBROOK RESIDENTIAL RESIDENTIAL SALES MARKET M25 M20 M25 Sutton POTENTIAL MARKETSandhurst OVERVIEW Epsom Sittingourne There is currently no new build stock available in Snaresbrook due to restricted development supply. Snodland J10 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 J9 M26 M20 Flat Price over last five years J5 5-year forecast sinceM3 2007/08. Snaresbrook is a popularBASINGSTOKE Greater London Fleet M25 A331 A3 aidstone urban conurbation bounded by several The current target is 1,123 homes per £385,000 (£550 psf) J7 41% 17% J8 J6 Oxted A34large green spaces including Leyton Flats, annum with a limited current supply of Aldershot Reigate A26 ILDFORD Wanstead Park 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 MARKETM23 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.