Preston city centre’s Premier Inn has been put up for sale, with an asking price of more than £8.8m.
The seven-storey building contains a 140-bedroom hotel let to Premier Inn on a 25-year lease, with 13.5 years unexpired and 8.5 years until a break option. The lease also contains fixed 2.5% per annum compounded increases every five years.
In addition to the hotel, the building offers four shops located on the ground and first floor, with one currently vacant.
The investment reflects 8.3% net initial yield for the hotel and 11.5% for the retail space.
CBRE has been appointed to market the opportunity.
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