Sidra Capital Acquires Traveloge Hotel Terminal 5 At London’s Heathrow Airport

LONDON, UK, August 2018 – Sidra Capital, a Shari’ah-compliant financial services company, has acquired the Travelodge Terminal 5 Hotel at Heathrow Airport from Aberdeen Asset Management at a cost of £40 million. This is Sidra Capital’s first hotel acquisition in the UK and second transaction involving Aberdeen Asset Management in 2018.
The 297-bedroom hotel sits on the M25 junction leading into Terminal 5 and is one of the largest 3-star hotels in the area, serving both tourists and business travelers. Travelodge is the second largest chain in the UK budget hotel sector and the third largest chain overall in terms of number of rooms in the UK. With the recent announcement of a new runway to be constructed at Heathrow, the Travelodge Hotel Terminal 5 represents a key facilitator to this 10-year-plus infrastructure project and the staff needed to deliver it.
The building is fully let through an FRI long lease to Travelodge, an investment-grade hotel operator.
“We are very pleased at closing our first hotel transaction in London, which is a strategic addition to our property portfolio in the UK and a key enhancement to our commitment to maintaining continuous sustainable growth through diversified expansion,” said Hani Baothman, Vice Chairman of Sidra Capital. “The UK market has always been a key priority for Sidra Capital and we continue to grow and diversify our investment portfolio utilizing our extensive country and sector experience and in-depth market knowledge to identify result-driven investment opportunities and maximize value to our clients.”
Sidra Capital was advised by Footantsey (legal) and Gerald Eve (technical) in the Travelodge Terminal 5 Hotel acquisition.