A Premier Inn in the centre of Belfast has gone on the market for nearly £10m, making it one of the highest-value city hotels to hit the market in recent times.
The Premier Inn on Alfred Street has 148 rooms and is let to the hotel group, part of Whitbread plc, for over £520,000 per year. It’s been put on the market by its property investor owner.
Selling agents CBRE said they were seeking offers of £9.93m or more for the property – which compares with a sale price of £9m for a Premier Inn in the Cathedral Quarter in 2013.
The modest scale of the increase in asking price for the smaller Alfred Street hotel could reflect the huge growth in hotel room numbers in the city over the last few years.
Premier Inn’s lease provides for rent increases every five years, which could mean its average rent goes up to £620,000 per annum, according to a sales brochure for the hotel.
Gavin Elliott, senior director, capital markets at CBRE NI, said: “The Premier Inn on Alfred Street represents one of the larger hotel investments to come to the market in Northern Ireland over the past year.
"The property is well let to Premier Inn Hotels Limited with a Whitbread Group plc guarantee providing an unexpired lease term of over 15 years and the additional benefit of indexed linked rent reviews.