Premier Inn, Wigan

MK2 have successfully advised Harrogate Street BPRA LLP c/o Downing LLP on the sale of Premier Inn Hotel, Wigan to clients of Philips Lockhart Starr for a total consideration of £5,550,000.

Conveniently located on Harrogate Street in Wigan, close to the main shopping and business district, the 83 bed hotel over ground and 4 upper floors together with reception, ground floor bar / restaurant and ancillary accommodation. Let to Premier Inn Hotels Limited on a lease expiring on 27th April 2039 with a tenant’s break at 27th April 2034 providing 12.5 years term certain on full repairing and insuring terms.  Current rent of £302,862.59 per annum equating to a very low rate of £3,648 per bedroom. The rent is reviewed every 5 years to the Consumer Price Index upward only and capped at 4.00% with the next review is on 17th April 2024. Assuming CPI growth at 3.00% pa until the next review we estimate the reversionary rent to be £345,051 per annum.  

Yield equates to 5.17%