CBRE and JLL have been appointed to dispose of the Radisson Blu Hotel, Edinburgh, Park Inn by Radisson, Manchester City Centre and The Quay Leisure Park, Glasgow. The properties are on the market with a combined asking price of £132.3 million. The properties are available individually and equally offers are invited for any combination of the assets.
The Radisson Blu, Edinburgh, enjoys a prime location on the Royal Mile and boasts 238 bedrooms plus restaurant, bar, conference rooms and leisure facilities. The opportunity also includes a youth hostel and retail unit plus a site to the rear with development potential. The hotel is let to Rezidor with 24 years unexpired and combined with the two adjacent tenants generates rent of approx. £3.55m per annum. This lot has a guide price of £59 million.
The Quay Leisure Park, Glasgow is located in the city centre in an established position fronting the River Clyde and close to the M8 motorway. The park comprises 13 leisure units and an Ibis hotel on a site area of approximately 15.9 acres. Anchor tenants at the park include Odeon Cinemas, The Original Bowling Company, ALEA Casino and Mecca Bingo. The property is being offered with a guide price of £53.3 million.
The Park Inn by Radisson, Manchester City Centre is situated in a prominent, high profile location close to the Phones4U Arena and the £800m NOMA regeneration scheme. The hotel comprises 252 bedrooms plus restaurant, bar, conference rooms and leisure facilities and is let to Rezidor on a turnover lease with circa. 20 years unexpired. The property is being offered with a guide price of £20 million.
Kerr Young, Director of Hotels and Hospitality for JLL, commented:
“This portfolio gives investors the opportunity to acquire not only a secure income stream with great covenant strength, but also prime real estate in two key UK cities.”
Paul Collins of CBRE Hotels commented:
“We are seeing substantial trading growth in the Edinburgh and Manchester hotel markets and this will enhance the future rental income for the buyer of these rarely available hotels which are on performance leases.”
Toby Hall of CBRE’s Leisure team added:
“The Quay, Glasgow offers purchasers the ability to acquire long-term, secure income from reputable national leisure operators.”
Mark Smith, Director of Out of Town Retail & Leisure for JLL, concluded:
“The property’s location is in the heart of a booming city where confidence continues to grow, with several major investment projects on both sides of the Clyde now moving from the drawing board to development, showing the strength of the investment appeal from the market.”