Property overview

Travelodge Hotel & Costa Coffee Drive Thru, Duckington Lane, Witney, OX28 4TJ

exchanged

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£8,327,000
Dec 2019

Hinton Developments, represented by FSP, has exchanged contracts with BMO Real Estate,  on the forward funding of a new 63 bed Travelodge Hotel and Costa Coffee Drive Thru unit on Duckington Lane Witney.

Construction on the new hotel and Drive Thru unit has commenced with practical completion expected in November 2020.

The hotel is pre-let to Travelodge Hotels Ltd for a term of 25 years from practical completion.  The lease is subject to 5 yearly upward only reviews to RPI collared at 1% and capped at 4% per annum compounded.  The commencing rent will be £356,147.82 per annum (£5,653.14 per room).

The drive-thru unit is pre-let to Costa Ltd for a term of 15 years from practical completion.  The lease is subject to 5 yearly upward only reviews to RPI collared at 1% and capped at 3% per annum compounded.  The commencing rent will be £88,000 per annum (£40.00 per sq.ft).

The development funding sold for £8,327,000 which reflected a net initial yield of 5.00%.