LaSalle Investment sees potential in London budget hotel

LaSalle Investment Management, a subsidiary of JLL, has bought a 150-room budget hotel in London for £40 million from a syndicate of private investors.

The property, leased to Travelodge Hotels until 2043, is adjacent to Euston station the site of London’s forthcoming “HS2” high-speed rail connection to the West Midlands as well as a potential future site for Crossrail 2. The hotel's rent, which will be paid by Travelodge Hotels, will be linked to inflation, and the vendors identified the asset as having strong growth potential due to the strength of the location.

Euston is one of the UK’s main transport hubs, and the surrounding area—as well as that of nearby King’s Cross station—is undergoing one of the largest urban regeneration projects in Europe.