Park Inn by Radisson Bedford St Mary’s Street,

Bedford MK42 0AU

LOCATION:

n Prominent building on the banks of the River Ouse in central Bedford

n Excellent location with immediate access to the A6 and within 10 miles of the A1 and the M1

n Approximately 21 miles from London Luton Airport

ASSET DETAIL:

n 120 air-conditioned, en-suite bedrooms

n Seven well-equipped function rooms with the largest catering for up to 450 delegates

n 1.1 acre site with ample car parking

n Opportunity for residential development in the car park, subject to the necessary consents

n Majority freehold and part leasehold (with remaining term of approximately 49 years)

n 14 residential apartments on the four upper floors held under long leasehold tenures

n Total 2017 revenue of £3.0 million

n Available free and clear of current branding and management

Executive Summary

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Bedford and its surroundsPark Inn by Radisson Bedford is located in the county of Bedfordshire, situated almost halfway between London at 49 miles away and Leicester at 51 miles away. The hotel occupies a prominent site of approximately 1.1 acres in the centre of the town, offering excellent views from the south bank of the River Ouse overlooking Bedford Town Bridge. The hotel provides good access to Bedford’s principal retail areas, bars and restaurants, as well as Bedford College and Bedford Rowing Club.

Local employers in the area include Network Rail, Unilever, Capita, Cardington Studios, Millbrook and Autoglass, as well as Bedford University and Bedford College. Bedford’s primary business park, the Priory Business Park, is approximately 2 miles away. Local leisure activities in the area include Priory Country Park, Woburn Safari Park and Woburn Abbey located 2 miles, 11 miles and 13 miles away respectively.

Park Inn by Radisson Bedford is located on the A6 and provides immediate access to a network of A roads surrounding the property, which allow for easy access to the M1 in approximately 9 miles and the A1 in approximately 10 miles. This infrastructure stands to be further improved through the Council’s Transporting Bedford 2020 programme, which will invest £19.6 million into further improvements.

London Luton Airport is located approximately 21 miles south of the hotel. The airport served a record 15.7 million passengers in 2017, providing the property with strong international links to key business and leisure destinations. Additionally, Bedford Railway Station is located 0.8 miles from the property, which provides journey times to London St Pancreas International Railway Station of just 40 minutes.

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Accommodation

Food and Beverage

The hotel has 120 modern, en-suite bedrooms. All bedrooms are air-conditioned and equipped with complimentary Wi-Fi, individual climate control, a flat screen TV and tea and coffee making facilities. 15 bedrooms have baths, whilst the remaining 105 bedrooms offer showers.

SCHEDULE OF BEDROOMS

Bedroom Type Number Average Size (sq m)

Triple 1 21

Standard Double 66 21

Standard Twin 21 20

Single 32 18

Total 120 20

The hotel is home to the RBG Bar & Grill, which provides restaurant dining for 100 covers. More casual dining is available for 50 covers in the bar and 20 covers in the reception lounge. The restaurant benefits from first floor riverside views.

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Meetings and EventsThe hotel offers seven meeting rooms, the largest of which is the County Suite and can host up to 450 delegates. The County Suite offers a contemporary feel and can be divided in to two smaller function rooms, providing excellent flexibility to delegates.

All of the function rooms are arranged over the ground and first floors, with each room offering individual climate control and audio-visual technology, as well as the option of a private bar. The hotel holds a Civil Ceremonies License.

SCHEDULE OF MEETING ROOMS

Meeting Room Maximum Capacity Area (sq m)

County Suite 450 398

Abbey (part of County Suite) 250 270

Bridge (part of County Suite) 120 128

Pilgrim 120 138

Tavistock 60 72

Woburn 20 37

Elstow 20 19

Boardroom 10 31

Total 680 695

There are 78 car parking spaces located on-site, which provide an additional revenue stream of approximately £60,000 per annum. Further car parking is provided nearby by a public ‘pay & display’ car park.

Leisure FacilitiesThe hotel provides a health suite to the north side of the building at riverside level, which comprises a gym for residents only. The hotel also offers a sauna and a treatment room, however these are currently not in use.

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Full trading information is available to interested parties through the joint selling agents under a confidentiality agreement. A brief summary of trading history is provided below:

2015 2016 2017

Occupancy 73.1% 74.7% 69.6%

ADR £56.03 £61.79 £62.69

RevPAR £40.97 £46.18 £43.65

Turnover £2,828,000 £3,101,000 £2,953,000

In 2016, the Park Inn by Radisson Bedford experienced year-on-year RevPAR growth of 13%, resulting in a positive growth in total turnover. This was driven by Millbrook vehicle testing ground, the Cardington Hangers and a number of projects in the area, allowing management to yield the room rate more effectively. The softening in rooms turnover in 2017 was due to a number of projects in the area not repeating as well as weaker levels in demand from Millbrook. Management have a comprehensive sales and marketing plan in place for 2018 to grow total turnover and profitability at the hotel.

FUTURE POTENTIAL

There is an opportunity to develop the car park for residential use, subject to the necessary consents. Further information is available on request.

There is also potential to extend the long leaseholds on the residential apartments, subject to further due diligence.

Trade

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Tenure & Basis of SaleThe property is held majority freehold and part leasehold. The leasehold element comprises a three-storey extension block, which is held on a 99 year long leasehold from 17 March 1971 at a passing rent of £10,346 per annum. 14 residential apartments arranged over the four upper floors of the freehold tower block are held under long leasehold tenures with a peppercorn rent.

Operating StructureAvailable free and clear of current branding and management.

ServicesThe hotel has mains electric, gas and water. Wi-Fi is available throughout.

Inventory & StockFixtures, fittings and equipment are included in the sale with general stock at valuation on completion.

EPC EPC rating C.

LicencesThe hotel has a Premises Licence and a Civil Ceremonies License.

TUPEThe purchaser will be required to comply with the relevant legislation in respect of current employees.

VATThe property is elected for VAT.

Viewings & Further InformationViewings to be arranged strictly by appointment through joint selling agents Savills and Knight Frank. For further information, please contact the selling agents. No contact should be made with the hotels directly or with Radisson Hotel Group.

Transaction StructureIt should be noted that this is a sale on behalf of Fixed Charge Receivers and therefore no warranties or guarantees in any respect, including VAT can be given. Limited replies to enquiries will be given and the Receivers will have no personal liability for any such replies. Interested parties should review the Transaction Structure Paper contained within the secure data site that sets out the basis of sale.

General Information

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Martin Rogers +44 (0)20 7409 8039 mrogers@savills.com

Georgina Liggins +44 (0)20 7877 4655 gliggins@savills.com

savills.com

Henry Jackson +44 (0)20 7861 1085 henry.jackson@knightfrank.com

Alex Macaulay +44 (0)20 3826 0690 alex.macaulay@knightfrank.com

knightfrank.co.uk

Asset managed by C1 Capital