Commercial · For sale

ibis budget, Portsmouth – Freehold Essendi Hotel Investment For Sale

Fratton Way, Southsea, Portsmouth, Portsmouth, PO4 8SL

Offers over £7,660,000

Tenure

Freehold

Added

18 Oct 2026

About this property

Purpose-built 120-bedroom hotel; FRI lease to Essendi UK Hotels 2 Limited; Guaranteed by Essendi S.A.

The property comprises a 120-bedroom hotel across ground and four upper floors, purpose-built in 2008 and comprehensively refurbished in 2018. Steel-frame construction with metal deck and concrete slab floors. All rooms are ensuite with lift access to all levels. Specification includes 15 demised car parking spaces adjacent to the hotel plus access to 72 spaces in the wider retail park; 6 disabled-access rooms; Wi-Fi; breakfast buffet and snack vending; and a recently upgraded HVAC cooling and heating system (tenant improvement). The tenant is planning a phased refurbishment to the new 'ibis blue' branding, with top-floor rooms scheduled for Q4 this year. EPC rating C (60). Aerial view showing the hotel within The Pompey Centre cluster

Key points: - Unique opportunity to acquire an ibis budget hotel in the southern. - Portsmouth is a key UK maritime city with a strong naval, student and tourism economy and over 12 million annual visitors. - Securely let on FRI terms to Essendi UK Hotels 2 Limited (D&B 5A2), with a guarantee from Essendi S.A. (D&B 5A1). - Passing rent of £519,217.72 per annum, equating to a low £4,327 per key. - Lease expiry 22 December 2035 (c.9.25 years unexpired); annual. - Freehold. Quoting price significantly below replacement cost. - Purpose-built 120-bedroom hotel arranged over ground and four upper floors (built 2008; comprehensively refurbished 2018). - Net Initial Yield: 6.50%. - Capital Value: £63,833 per key. - Net of service charge shortfall and based on the topped-up rent to December 2026 rent review of £532,458 p.a. (£4,437 per key), assuming a 3% p.a. RPI forecast and purchaser costs of 6.66%.

Figures are taken from the vendor's particulars and are subject to contract. Enquire through PropSale for the full information pack.

Features

• Passing Rent: £519.2k pa
• Net Initial Yield: 6.50%
• Tenure: Freehold