Riverside Capital has sold a Travelodge hotel in Newton Road, Torquay, to Ropemaker Properties for £8.5m.

The sale of the 90-bedroom hotel to the property holding company of the BP Pension Fund reflected a net initial yield of 5%. The 31, 312 sq ft property is let on a lease with 25.5 years unexpired and five-yearly, RPI-linked rent reviews.

Jeremy Grundy of Levy Real Estate – who advised Riverside Capital on the sale – commented: “This deal demonstrates the continuing strong demand in the market for long-dated secure income, and also the strength of the Travelodge covenant”.

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.”