LXI REIT agrees regear of Travelodge leases
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LXI REIT said it had agreed a lease regear with Travelodge Hotels on 122 properties which formed part of the Secure Income REIT portfolio.
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The company has extended the unexpired lease terms on the 122 Travelodge hotels by a weighted average of nine years in return for inserting caps and collars (4% pa and 1% pa, respectively) on the previously uncapped and uncollared RPI rent reviews.
LXI said the lease extensions were anticipated to have a material positive impact on asset values and further enhance the investment attraction of the hotels.
“The change in rent review profile is also designed to ensure that the rents remain affordable over time and avoid becoming potentially over-rented versus market rents,” it said.