Topland to invest in budget hotels

A commercial property firm has announced plans to invest £360 million of equity in developing hotels.

The Times reports that Topland, the investment vehicle controlled by Eddie and Sol Zakay, hopes to purchase 50 sites over the next 18 months which could be leased to budget hotel chains such as Travelodge and Premier Inn.

Topland's director of real estate finance Tom Betts said that unlike other property investment firms, the company would not seek to make quick profits by selling the developments on as soon as construction was complete.

"We are long-term investors," he commented.

Topland will be using £200 million from its own funds, and £160 million of debt finance for its investments, the newspaper said.

The firm is also hoping to take advantage of the low commercial property prices in the current market.

The news follows an announcement by Whitbread, the UK's largest hotel and restaurant group, that it is to invest £100 million in six new London hotels.

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