Riverside Capital has sold its Travelodge hotel in Torquay for £8.5m, returning almost 1.5x equity to investors.

The sale of the 90-bedroom hotel comes six months ahead of schedule, achieving an IRR of 17.29% over a 31 month hold period.

With the lease subject to an open RPI uplift in September, the sale is reflective of increased investor demand for long income, as well as continued growth in the budget hotel sector.

Ashley Wilcox, Investment Director at Riverside Capital, said: “Identifying the optimum time to dispose of this asset ahead of plan has provided our investors with good returns  – we are naturally delighted with the outcome.”

Levy LLP and Brown Cooper Marples acted jointly for Riverside Capital, with Springer Nicholas acting for the purchaser.

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