LXI REIT is close to selling a portfolio of Travelodge hotels for £210m.
The deal is under offer, with contracts in solicitors’ hands, on the sale of the 66 Travelodge hotels. The sale price of £210m is in line with current book value (as at 30 September 2023), the company said.
If completed, the majority of the sale proceeds would be used to pay down debt, reducing group LTV to 34% from 38%, as at 30 September 2023, and reducing the Travelodge proportion of the total rent roll to 11% from 18%.
The company said that the sale remains subject to contract and due diligence, and that there is no certainty that the sale will complete. It will make a further announcement when contracts exchange.
LXI : LXI REIT agrees deal to sell Travelodge portfolio for £210m
reflecting a yield of ?
> 7.5%
Hi Jonathan, details on the yield have not been released yet, but I’m sure it will be by LXI if/when the deal exchanges/completes. Without details on which properties are included in the portfolio and lease details, we could not ascertain the yield