UBS Asset Management’s (UBS-AM) Real Estate & Private Markets (REPM) business has purchased the Travelodge hotel in Edinburgh, Scotland, for £9.4 million ($11.4 million) on behalf of its Long Income UK Property Fund.
The seller was a private individual.
The five-story hotel asset is comprised of 73 en-suite bedrooms, a restaurant, and a common space lobby on the ground floor. It will continue to be operated by Travelodge Hotels Ltd. on a long-term lease running to 2042, with a landlord option for a further five years, said UBS.
Refurbished in 2013, it is currently let on a long-lease subject to five-yearly uncapped RPI upwards-only rent reviews.
The asset is located near multiple transportation hubs, as well as leisure and culture offerings and tourist attractions, such as Edinburgh Castle and Royal Mile.
UBS noted that the acquisition is fully in-line with the fund’s investment strategy and further diversifies the tenant mix within the fu
