Landmark Hotel Investment Opportunity

 

SUMMARY

INVESTMENT SUMMARY

        • A rare opportunity to purchase a prime, long income hotel; situated in the heart of Liverpool
        • Named after the legendary Liverpool football player and manager, Bill Shankly OBE
        • Located in Liverpool City centre on Victoria Street just moments from a plethora of leisure, retail, corporate and transport terminals
        • Situated on a Freehold island site within the Liverpool Maritime Mercantile UNESCO World Heritage Site
        • The property is arranged over three basement levels; ground and first to seventh floors across a total GIA of 170,362 sq ft (15,827 sq m) excluding roof terrace
        • The building provides hotel accommodation of 125 bedrooms, bar & restaurant, two event suites (1,120 max. delegates), two rooftop terraces, a modern gymnasium and secure underground car parking with 111 spaces
        • The property is to be let on a new 25 year FRI lease from the date of completion at a commencing rent of £1,800,000 per annum exclusive
        • The lease will be subject to 5 yearly rent reviews linked to the Retail Price Index (RPI) with a collar and cap of 1% and 4% (compounded annually)
        • Offers sought in excess of £28,100,000 subject to contract and exclusive of VAT which reflects a Net Initial Yield of 6.00%, subject to standard purchaser’s costs of 6.76% which equates to a low capital value of £165 psf.

LOCATION

LOCATION

The City is the commercial and administrative centre for the Merseyside region and is located approximately 212 miles (341 km) north west of London, 99 miles (159 km) north west of Birmingham, 55 miles (88 km) south of Blackpool and 35 miles (56 km) west of Manchester. The boundaries of Liverpool are adjacent to Bootle, Crosby and Maghull in the south, Sefton to the north, and Kirkby, Huyton, Prescot and Halewood in Knowsley to the east.

Liverpool is the 6th largest City in the UK and 2nd largest in the North West region, after Manchester, with a metropolitan population over 2.2 million. Given its location on the Mersey Estuary, the City has historically acted as one of the UK’s most prominent ports.

The City is closely associated with the arts, particularly music; the popularity of the Beatles, who are regarded as the most influential band in history, contributed to the City’s status as a tourist destination. Since then, the City has continued to produce hundreds of notable musical acts—musicians from Liverpool have produced 56 No. 1 hit singles, more than any other City in the world.

  • Liverpool also has a long-standing reputation as the origin of countless actors and actresses, artists, comedians, journalists, novelists, poets, and sportspeople. The City has the second highest number of art galleries, national museums, and listed buildings in the UK; only the capital, London, has more.The City has undergone a major resurgence since being awarded European Capital of Culture in 2008, with investment of over £3billion in construction and infrastructure projects. The City is home to a new major ferry terminal at Pier Head, accepting up to 40 cruise ships per year, and Liverpool’s John Lennon Airport, 6 miles (9.6 km) south east, one of the UK and Europe’s fastest growing Airports providing flights to over 60 different locations.The City is also home to four universities; The University of Liverpool, Liverpool John Moore’s University, Liverpool Hope University and Sir Paul McCartney’s Liverpool Institute of Performing Arts; producing around 18,000 graduates each year and an annual student population of approximately 50,000.Liverpool has seen significantly greater improvements in new business start-ups, income distribution and unemployment rates since 2005-07 compared to the UK average. Liverpool has also experienced above average improvements in the skills of both 16-24 and 25-64 year olds, in housing affordability, and also in terms of falling carbon emissions. (Good Growth for Cities, PwC Report 2019)
  • SITUATION

    SITUATION

    The Shankly Hotel enjoys a prominent position on both Victoria Street and Whitehall in the heart of Liverpool City centre. Popular attractions and tourist destinations such as
    The Royal Court Theatre, The Met Quarter, Liverpool One, St. George’s Hall, numerous art galleries, museums, pubs and Beatles-related locations are all within a 10 minute walk (0.5 miles) of the hotel.

    This central location affords excellent transportation links; Liverpool Lime Street train station and Queens Square Bus Station are within 0.3 miles and 0.1 mile respectively. The M62 and M57 are located less than 7 miles (11.2 km) from the property and provide easy access to the wider motorway network. Access to the Ferry ports is also within walking distance just 0.7 mile (1.12 km) west of the hotel.

    DESCRIPTION

    DESCRIPTION

    Occupying an expansive former council building, the hotel has been sympathetically designed to deliver luxury accommodation while showcasing Bill Shankly-related memorabilia, historic photographs and artwork.

    The Shankly Hotel provides 125 en-suite hotel bedrooms set over seven floors, accommodating 568 guests. 63 of the bedrooms follow the Bill Shankly theme whilst 62 are of a flamboyant boutique style. The rooms offer a mixture of bespoke one to twelve beds per room, a selection of the larger rooms also benefit from a separate lounge area. Each room benefits from en-suite bathrooms, complimentary WiFi, with the majority of rooms having waterfall showers, spa baths, 50” smart television’s and Bluetooth audio facilities.

    The Bastion Bar & Restaurant is located on the ground floor and open to both residential guests and the wider public for breakfast, lunch and dinner with the ability to host a maximum of 150 covers. It is a popular destination throughout the week and on match days. The Garden of Eden bar and terrace on the rooftop of the hotel is open during the summer months and boasts 360-degree panoramic views across the City with capacity for up to 1,000 guests. Works are also underway to install an infinity pool on the rooftop (further details available upon request).

    There are two dedicated event spaces within the hotel; the Garden of Eden suite on the top floor can host up to 380 seated guests and 1,000 standing guests (by utilising the rooftop garden area). The Baby Eden room is located on the ground floor and more suited to smaller parties of up to 120 guests. The hotel holds two Premises Licences and Civil Ceremonies Licenses.

    At part ground and part first floor levels, some 13,000 sq ft (1,207 sq m) has been sub-let to Liverpool City Council, t/a Lifestyles in Liverpool, and is operated as a Health and Fitness club separate from the hotel’s operations. The three storey basement provides secure car parking facilities with 111 spaces and is available to both residents of the hotel and the general public 24 hours a day.

  • TENANCY


    TENANCY

    The property will be let in its entirety to The Shankly Hotel Ops Limited (company number: 09972017), on a new full repairing and insuring (FRI) lease for a unbroken term of 25 years from the completion date of the purchase.

  • The passing rent is to be £1,800,000 per annum, subject to 5 yearly rent reviews linked to the Retail Price Index (RPI) with a collar and cap of 1% and 4% (compounded annually).


    COVENANT

    Signature Living are an independent hotel group, headquartered in Liverpool, who own and operate four hotels in the City, of which the Shankly is the flagship. The group has a further five sites in their development pipeline within Liverpool and the wider North West region.

  • The group has grown rapidly since its inception in 2008, from offering serviced apartments in key central positions within Liverpool to successfully operating large stand-alone boutique / themed hotels, having taken advantage of a gap in the market through a combination of their flair for interior design and the provision of accommodation suitable for groups, families and couples.This approach has enabled the group to become the largest hotel/ apart-hotel operator in Liverpool whilst consciously deviating from the mainstream hotel sector’s corporate operational model and instead providing a unique and highly personalised experience for all guests. Expansion plans are in place over the next 5 years to take their concepts to other locations across the UK including, Manchester, Glasgow, Newcastle, London and Birmingham.Signature Living’s occupancy levels run far above average in any one area. In Liverpool they consistently run at over 87% occupancy which significantly exceeds the rest of the market. The group also occupies three of the top five spots for Hotels in Liverpool on TripAdvisor, ranked by traveller rating. Signature Living boasts a strong online presence to ensure an effective and up-to-date marketing strategy and have successfully created a “virtual ecosystem” around the
    business to attract guests using a combination of social media platforms, SEO, and blogging to bring the stories, buildings and locations to life. Signature Living has in excess of 500,000 followers across their wider online community and this ‘social beacon’ approach has proved to be extremely profitable in attracting both new and returning customers to the venues. For further information please visit www.signatureliving.co.uk

  • TENURE

    The Property is held Freehold.

     

    IMAGES

    PHOTO GALLERY

    PROPOSAL

    EPC

    Available upon request.

    VAT

    VAT is not applicable.

    PRICE

    Offers sought in excess of £28,100,000 subject to contract and exclusive of VAT which reflects a Net Initial Yield of 6.00%, subject to standard purchaser’s costs of 6.76% which equates to a low capital value of £165 psf.

    MISREPRESENTATION ACT 1997 & DECLARATION

    Buchanan Bond Real Estate Ltd, for themselves and for the vendors of this property whose agents they are, give notice that:
    i) The particulars are set out as a general outline only for the guidance of intending purchasers, and do not constitute, nor constitute part of, an offer or contract.
    ii) All descriptions, dimensions, references to condition and necessary permission for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact and must satisfy themselves by inspection or otherwise as to the correctness of each of them.
    iii) No person in the employment of Buchanan Bond Real Estate Ltd has any authority to make or give any representation or warranty in relation to this property.

    BROCHURE

    BROCHURE

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