Premier Inn in Belfast, Northern Ireland Listed For Sale

Belfast, the capital of Northern Ireland is the 12th largest city in the United Kingdom and the 2nd largest on the island of Ireland. The city is located approximately 165 km (103 miles) north of Dublin and 120 km (75 miles) south east of Derry-Londonderry.

The hotel is situated on Alfred Street in the Linen Quarter. Linen Quarter is the area to the South of Belfast City Hall and would be regarded as Belfast’s main Central Business District with numerous hotels, pubs and restaurants.

The property is only a few minutes’ walk from Belfast’s prime retailing core and is within close proximity to Lanyon Place Railway Station, Great Victoria Street Train Station and Europa Bus Station.

The building comprises a 148 en-suite bedroom hotel with bar and restaurant set over ground and eight upper floors. The hotel was constructed in 2006 and includes a retail unit fronting onto Alfred Street occupied by Poppogoblin which is being retained by the vendor.

The hotel forms part of the Adelaide Exchange complex which comprises approximately 140,000 sq ft of grade A office accommodation and 180 space underground car park.

The hotel is let to Premier Inn Hotels Limited (guaranteed by Whitbread Group Plc) until 13th August 2037 (12.83 years unexpired) at a current passing rent of £529,618 per annum reflecting a passing rent of £3,578 per room. We believe the hotel is significantly under rented.

Premier Inn’s lease is subject to 5 yearly rent increases to CPI capped at 4% per annum compounded. At the current CPI indices (June 2024) and then assuming 2.25% and 2.00% CPI until next review (14th August 2026) the rent could potentially be reviewed to c.£611,500 per annum.

Premier Inn is the UK’s largest hotel brand, with more than 82,000 rooms and 820 hotels. They operate hotels in a variety of locations including city centres, suburbs and airports. Premier Inn Hotels Limited is a wholly owned subsidiary of the Whitbread Group Plc whose other brands include Bar+Block, Hub by Premier Inn, Beefeater and Brewers Fayre.

Premier Inn Hotels Limited has a CreditSafe rating of 88/100 and Whitbread Group Plc has a CreditSafe rating of 86/100 both of which reflect “Very Low Risk”.

The property is held long leasehold for a term of 800 years from 14th September 2007 subject to a nominal ground rent of £1 per annum from Straben Development Limited.