Ground Rent Hotel Investment for Sale
Summary
- 5.72 acre self contained site
- Established 130-bedroom hotel with spa and restaurant
- Ground lease expiring 12 December 2113, providing approximately 87 years unexpired
- Average rent received over the last three years: £112,338.16 per annum
- Outstanding 2026 rent review providing reversionary potential
Accommodation
The accommodation comprises the following areas:
| Name | sq ft | sq m | Availability |
| Outdoor | 249,163.20 | 23,148.02 | Available |
| Total | 249,163.20 | 23,148.02 |
Location
The property is situated in a prominent position on St Margarets Roundabout on the edge of Segensworth Industrial Estate which provides access via Southampton Road to Junction 9 of the M27 and Fareham in the opposite direction. There is a modern Shell Garage with Waitrose petrol filling station located opposite and a new Lidl supermarket is under construction opposite.
In terms of local transport infrastructure, Junction 9 of the M27 lies approximately 1.6 miles distant, the M27 comprising the major coastal road serving the wider Solent conurbation. In addition, the M27 joins the M3 at Junction 4, the latter serving the major towns and cities of Winchester, Basingstoke and Farnborough, prior to intersecting with Junction 12 of the M25.
Get directions from Google Maps
Mainline Stations
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Swanwick33 mins
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Fareham42 mins
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Bursledon65 mins
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Hamble76 mins
Underground Station
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Reading835 mins
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Twyford885 mins
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Maidenhead985 mins
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Taplow1006 mins
Further Information
Price Offers in excess of £2,000,000
Rates Payable Upon Enquiry
Service Charge n/a
Estate Charge n/a
EPC Rating This property has been set as EPC exempt.
Reason: EPC has been commissioned, will be available in less than 28 days
Description
The property for sale comprises the freehold interest in a 5.72-acre site with a ground lease granted to HIN Fareham Ltd for a 130- bedroom hotel, which was originally constructed by the Forte Group circa 1991.
The hotel was fully refurbished in 2025 and rebranded from Holiday Inn to voco Fareham - Solent.
Viewings
Strictly via prior appoitment only.
Legal costs
Each party to be responsible for their own legal costs incurred in the transaction.
Price
Offers are invited in excess of £2,000,000.
Based on total rent received, the investment reflects the following net initial yields:
2023: £103,613.20 p.a. (4.87% NIY)
2024: £118,676.22 p.a. (5.58% NIY)
2025: £114,725.05 p.a. (5.40% NIY)
Three-year average: £112,338.16 p.a. (5.29% NIY)
Tenancy
The property is let on a ground lease to HIN Fareham Ltd (title number - HP785642) until December 2113, with a base rent of £75,000 per annum.
The rent payable comprises the higher of:
- a minimum guaranteed rent of £75,000 per annum; or
- 4% of net bedroom revenue.
Top-up rent has been received in each of the last three years:
2023 - £28,613.20,
2024 - £43,676.22,
2025 - £39,725.05.
A rent review effective February 2026 remains outstanding, providing potential for future income growth. Early indications suggest the rent could be agreed at £127,020.23 (£52,020.23), subject to audited accounts (which are awaited). An uplift to this level would provide a 5.98% NIY.
Tenure
The property is currently held under title number P5283, however this parcel will be split to provide a new freehold title.
The long leasehold interest is held under title number HP785642
VAT
We have been advised that the site is not elected for VAT.
AML
In accordance with Anti-Money Laundering requirements, two forms of identification will be required from any beneficial owner together with evidence/proof identifying the source of funds being relied upon to complete the transaction.
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