Investors strike £26m deal for Birmingham Premier Inn building
The Premier Inn in Birmingham city centre has changed hands in a £26.5 million deal.
The auction for the hotel sent prices far higher than expected and underlines current confidence in Birmingham's property and hotel market.
Formerly a tired office building, the premises were acquired eight years ago and converted into a hotel by Cannock Developments, on behalf of the Downing investors.
Standard Life Assurance has now acquired the 152-bed budget hotel from a syndicate of private investors represented by Downing.
Niche property consultancy MK2 Real Estate advised the sellers. Mark Johnson, a director of MK2, said: “By agreeing a 20-year lease extension with Premier Inn on sale we were able to achieve maximum value for the asset and our client.
“The sale attracted lots of interest with a number of institutional investors competing to secure the deal and bidding significantly ahead of the asking price. This demonstrates confidence in Birmingham and the booming hotel sector.”
The Premier Inn is on Waterloo Street, in the heart of the city’s business district. It is let to Premier Inns Hotels until 2037. The 152 bedrooms are over seven floors, with a ground floor reception and the recently refurbished 80-seat Beefeater Block bar/restaurant.
