A prominent 110-bed hotel on the Bournemouth seafront has been sold to a private investor for just over £11 million, marking the latest transaction in a series of strategic disposals by Martin’s Properties. The Travelodge Seafront Hotel, measuring 39,187 sq ft, was purchased by Martin’s Properties in January 2022 and has now been sold for £11.185m, reflecting a net initial yield of 6.8 per cent. The focus key phrase for this article is Travelodge Seafront Bournemouth sale.
The sale follows the earlier disposal of Travelodge Four Marks in Alton, a five-bedroom hotel, to another private investor. Martin’s Properties originally acquired the Bournemouth asset in 2018, securing uncapped RPI-linked rent reviews and a residual value underpin that allows for alternative uses. These elements were seen as key to the asset’s strong investment performance and long-term growth potential.
Brook Stotesbury, head of asset management and investment at Martin’s Properties, said: “We are pleased to complete the sale of these strong performing assets and look forward to redeploying the capital in accordance with our regional portfolio strategy. The investment performance was underpinned by uncapped RPI linked rent reviews, improved trading figures and covenant strength.”
Richard Bourne, CEO of Martin’s Properties, explained that the acquisition of Travelodge Seafront Bournemouth had been opportunistic, following the Travelodge Company Voluntary Arrangement. He said the team had identified a chance to secure the investment at advantageous pricing with uncapped RPI reviews providing strong rental growth prospects. The sale of both hotel assets forms part of Martin’s Properties’ wider strategy to reposition its regional portfolio towards value-add retail warehouse and multi-let industrial assets, while expanding its Chelsea, Regional and Self Storage portfolios.
The Travelodge Seafront Bournemouth sale highlights the ongoing reshaping of regional hospitality portfolios by investors seeking to maximise returns and reallocate capital into sectors with long-term growth potential. The hotel’s strong trading performance and prime location on the Bournemouth seafront made it an attractive investment for private buyers seeking secure income streams linked to RPI reviews.
With the capital from this sale, Martin’s Properties is expected to focus on acquiring assets that align with its strategic priorities, including retail warehouses and industrial properties that offer long-term value creation and diversified income. The company’s approach underlines a broader trend in the market, with investors repositioning hospitality assets while maintaining exposure to high-performing locations.
