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Travelodge & Tesco Express, Birmingham

Carrs Lane, Birmingham, B4 7SS

Summary

• LOCATION
  BIRMINGHAM
• SECTOR
  HOTEL & CONVENIENCE
• TENURE
  FREEHOLD
• RECLAD IN 2026
  COST OF C.£2.2M
• HOTEL
  88 BEDROOMS
• TESCO
  4,119 SQ FT
• TENANTS
  TRAVELODGE & TESCO
• WAULT TO EXPIRIES
  25.1 YEARS
• WAULT TO BREAKS
  24.5 YEARS
• TOPPED UP RENT
  £705,400 PER ANNUM
• TRAVELODGE RENT
  £7,050 PER BED
• TESCO RENT
  £20.64 PER SQ FT
• TENANT COMMITMENT
  2025 LEASE EXTENSIONS
• PRICE
  £10.33 MILLION
• NIY
  6.40%
• RY
  7.10%
• HOTEL CAPITAL VALUE
  £101,600 PER BED
• DISCOUNT TO BUILD COST
  25%

More Information

• LOCATION

  Birmingham is the UK’s second city and a dynamic centre for business, culture and growth. With a population exceeding one million, it is the Midlands’ largest economy and continues to demonstrate strong momentum. The property occupies a highly prominent and strategic position in the heart of Birmingham city centre, fronting Carrs Lane and directly opposite Birmingham Moor Street Station and HS2.

• DESCRIPTION

  The property comprises a modern, seven-storey, purpose-built 88-bedroom hotel with a ground-floor convenience store, constructed in 2011. The hotel was comprehensively refurbished in 2023 at the tenants cost, with all areas modernised to include upgraded bedrooms and en-suite bathrooms, delivering contemporary accommodation. The ground-floor Tesco convenience store comprises 4,119 sq ft. The property was fully reclad, which completed in March 2026 at a cost of c.£2.2m.

• TENANCY

  The property is let to Travelodge Hotels Ltd and Tesco Stores Ltd on full repairing and insuring leases. The asset benefits from a long weighted unexpired lease term of 25.1 years to expiry and 24.5 years to break. The rent will be topped up to £705,400 per annum. Travelodge is reviewed 5 yearly to the greater of 5% or CPI capped at 4% compounded annually. Tesco is reviewed 5 yearly RPI (1% and 4%).

Gallery

ADS RE Ltd (ADS RE) on its own behalf and on behalf of the vendors / lessors of the properties whose agent ADS RE is, gives notice that:1 (a) All particulars provided are given as a general outline only for the guidance of the intending purchaser, lessee or tenant, and do not constitute in whole or in part, an offer of contract for sale or lease; (b) Whilst all particulars of properties given including but not limited to descriptions, dimensions, references to condition and necessary permissions for use and occupation and maps are believed to be correct and are given in good faith, they are however given without responsibility. None of the statements contained in these particulars as to the property are to be relied upon as statements or representations of fact; (c) The vendor / lessor does not make or give, and neither ADS RE nor any of its members or any person in its employment has any authority to make or give any representation or warranty whatsoever in relation to any properties. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor / lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor / lessor and a purchaser or tenant. 2 Prospective purchasers / lessees or tenants should not rely on any particulars provided and are strongly advised to; (a) Satisfy themselves by inspection or otherwise as to the correctness of each statement contained in these particulars; (b) Inspect the property and the neighbouring area; ensure that any items expressed to be included are available and in working order; (c) Arrange a full measured, structural (and where appropriate environmental) survey of the property; and (d) Carry out all necessary searches and enquiries. March 2026