Knight Frank has launched the sale of the freehold interest in the Travelodge hotel building in Aberdeen, offering investors a rare opportunity to acquire a prime asset with a long-term tenant covenant.
The property, which is let to Travelodge on a 25-year lease, is being marketed as a secure, income-generating investment in the heart of the city.
The move comes as Knight Frank continues to strengthen its reputation for handling specialist property investments across the UK, particularly in the hotel sector. The firm’s track record includes numerous high-profile hotel transactions, including the disposal and acquisition of Travelodge assets in major cities such as London, Edinburgh, and Sheffield, often with long unexpired lease terms and index-linked rent reviews
While details of the marketing campaign and pricing remain confidential, the offering is expected to attract significant interest from institutional and private investors seeking stable, long-term returns.
The Aberdeen Travelodge is let on a 25-year lease, providing a robust income stream backed by one of the UK’s leading budget hotel operators.
According to The Herald’s exclusive coverage, a Knight Frank spokesperson commented:
“This sale presents an exceptional opportunity for investors to secure a high-quality asset with a blue-chip tenant on a long lease. The Aberdeen hotel market continues to show resilience, and assets of this nature are in high demand.”
The asking price of offers over £7 million “reflects a net initial yield of 8.30% and a very attractive running yield of 9.79% in 2028”.
The property is being positioned as a core investment, underpinned by the strength of the Travelodge covenant and the length of the lease, which offers investors certainty of income in a sector that has demonstrated strong recovery and growth prospects in recent years.
The sale of the Aberdeen Travelodge freehold is expected to complete later this year, subject to the usual due diligence and legal processes.
