CBRE Hotels Team sells Valencia Travelodge

London, 2nd July 2019 – Global real estate advisor, CBRE, has sold The Travelodge at Valencia Airport for more than €15 million on behalf of Citygrove, equating to a net initial yield of approximately 5%. The hotel asset was sold to French investor, Perial AM.

The purpose built hotel, which consists of 116 rooms over three floors, is securely let to Travelodge Hotels, with parent company guarantee, FRI and with an unexpired term of just under 18 years. The property is located behind Valencia Airport and in front of Rosas Metro station, which easily connects the site to the city centre.

Jorge Ruiz, Head of Hotels, Spain, CBRE commented: “Given the unique offering of a triple net FRI lease and long unexpired term with a tenant with a strong track record, it is unsurprising that investor demand was so robust.

The Spanish hotel market continues to demonstrate high levels of liquidity and is well placed to continue attracting core investors because of its strong fundamentals. The city of Valencia is enjoying a healthy operating environment which has resulted in an uplift in transactional activity in the hotels sector compared to last year.”

Mark Farrugia, Development Director, Citygrove commented: “We are very pleased with this result achieved on the sale of Travelodge Valencia. Citygrove designed and built this hotel 8 years ago, during which time we’ve witnessed the resurgence of tourism demand into the city of Valencia. This disposal to Perial AM showcases the Group’s strategy of developing and trading quality hotel product through the cycle.  We were delighted with the strategic advice of CBRE hotels.”  

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.