Charity snaps up city centre Birmingham hotel
An 88-bedroom Travelodge hotel near Birmingham’s Curzon Street HS2 station has changed hands for around £10m.
London Charterhouse Property Group has sold off Carrs Lane Travelodge to Derwent Estates, the charity investment arm of Albert Gubay Charitable Foundation.
The building was put on the market earlier this year for £10.33m by ADS RE on behalf of the vendor, Charterhouse, who had themselves purchased the property in 2024.
The acquisition marks the foundation’s second hotel investment, adding to a diversified property portfolio worth over £550m, that it says generates sustainable income in support of its charitable objectives.
“It’s fantastic to have concluded the repositioning of the asset and to have sold it to the Albert Gubay Charitable Foundation, knowing the income will contribute to good causes,” said Tom Hesp, director of Charterhouse.
“The realisation of the business plan further cements our position as a market leader remediation specialist investor, with a focus on hotels in particular.”
Built in 2012, the building is currently leased to Travelodge and Tesco Express on long term agreements, both tenants having re-geared their leases as 25-year deals last year.
The property occupies one of Birmingham’s most strategically important locations, at the heart of the Birmingham Central Heart regeneration zone, adjacent to Curzon Street Station, the future city centre terminus for HS2.
Dan Whittingham of CBRE, who acted on behalf of the Albert Gubay Charitable Foundation and Derwent Estates, added: “Securing an asset with an AWULT of 24.5 years, index-linked income, and a location at the heart of one of Birmingham’s most significant regeneration zones, adjacent to HS2’s Curzon Street Station, represents a fantastic long-term acquisition.
“It was brilliant to have acted for the purchaser on the transaction, which was the second acquisition the CBRE Birmingham Investment team have advised the Albert Gubay Charitable Foundation and Derwent Estates in the last two and a half years.”
Charterhouse were represented by ADS.
