The two hotels achieved a net initial yield of 4.25% across the two properties and returned £56 million for the business. A 30-year term with five yearly CPI reviews (0-4%) was offered for both hotel properties which are in Westminster, Central London, and Oxford City Centre.
Sale and leasebacks are one way Whitbread can utilise its asset backed balance sheet to support the future growth of the business. In its UK estate, 56% of operational Premier Inn hotels are owned by Whitbread, a portfolio which was valued at between £4.9bn and £5.8bn in 2018.
As the hospitality sector continues to evolve in its core UK market, Whitbread believes there is the potential for a 45% growth in its network from a little under 86,000 UK bedrooms currently to a long-term room potential of 125,000 UK & Ireland rooms.
It is on track to offer its customers a choice of 98,000 UK rooms by 2030 based on the company’s committed and future development pipeline, including a programme of extensions to select established hotels and restaurants.