JR Capital has completed the acquisition of a Travelodge Hotel Investment in Wellingborough in Northamptonshire. The transaction marks another strategic investment by the company in the UK budget hotel sector.

The hotel is leased to Travelodge for an unexpired term of 23 years and benefits from inflation linked rent increases throughout the term.

A modern, recently refurbished & well-established hotel, Wellingborough offers easy access across the East Midlands, with direct rail connections to London St Pancras International in under an hour. The location is particularly popular with leisure visitors and eventgoers being a short drive from the Silverstone Circuit, the world-renowned home of British motorsport and the Formula 1 British Grand Prix, in addition to Stanta Pod, Europe’s largest drag racing venue and Althorp House, the family estate of the late Princess Diana, which attracts thousands of international and domestic visitors annually.

The property was acquired off market from a UK family-owned property company. Nightingale Partners and KelletGrove acted on behalf of JR Capital.

Commenting on the acquisition, Michael Ferris, Head of Investment at JR Capital, said:

“We are delighted to have completed this latest transaction. The property was acquired at an attractive net initial yield of 7% and provides well secured income from a top tier hotel operator. We believe it’s a good time to be buying long dated bond type income as yields will naturally compress when interest comes come down in the short term”.