The RO Group has announced it has sold the Travelodge located on the Riverside Retail Park, Hankridge Farm in Taunton to The Independent Order of Oddfellows Manchester Unity Friendly Society (The Unity United (Property) Investment Fund) for £3.9million reflecting a net initial yield of 6.375%. The RO have been the proud owners of the Travelodge for close to a decade and are delighted to have had a long relationship beneficial to the local economy of Taunton and to the RO with one of the UK’s biggest hotel brands.
The hotel is a significant contributor to and player within the commercial fabric of Taunton, a thriving county town and a major commercial centre. Guest numbers at the hotel are however not only driven by local business but also by increasing leisure demand around Taunton itself, and by West County bound travellers.
The Travelodge is a purpose built, future proofed 64 bedroom hotel with a larger than typical room size and a recently upgraded Energy Performance Regulation rating of EPC B. The hotel is set amidst extensive retail, leisure and office uses. Other businesses in the immediate vicinity of the hotel include Brooks Macdonald, B&Q, Hollywood Bowl, McDonald’s, KFC, Halfords, Sainsbury’s and the Hankridge Arms.
RO were advised by BNP Real Estate and WBD. Christopher Dee LLP represented the purchaser.
Edward Rowlandson, Group Managing Director, said:
“We have had tremendous success with our Travelodge asset in the town, which lies only around 40 miles from both Bristol and Exeter airports, and are delighted to pass the baton to the new owners. We believe that they will enjoy continued favourable returns from the property, which will continue to benefit in the long term from the nearby development of Hinkley Point, one of the UK’s major infrastructure investment commitments.
“We will use the proceeds of sale in the normal course of our business: to identify, purchase, develop and maintain property assets across the southern half of the country for both our continued success and to the benefit of local economies. Reinvestment into and the upgrading of assets by the private sector is an important tenet of the national economy, particularly with sustainability being such an important focus, and one that we will continue to pursue.”
Nick Cashmore, Investment Director, said:
“We are very pleased to have successfully concluded our business plan and completed the sale in a quick timeframe. We are actively seeking new development opportunities to reinvest the proceeds of this and other recent sales from the portfolio.”