LXi REIT plc, renowned for its investment in long-term, inflation-linked commercial property assets, has announced the successful completion of its transaction with Travelodge, selling 66 of its branded hotels for a total of £210 million. This strategic move, initially disclosed on 8 January 2024, marks a significant development in the company’s operations.

The transaction with Travelodge underscores LXi REIT’s robust strategy in the commercial real estate market, focusing on properties across the UK with long leases to secure tenants. These properties are spread across various sectors, ensuring a diverse and stable portfolio.

LXi REIT, a key player in the real estate investment trust sector, is listed on the London Stock Exchange and is a member of the prestigious FTSE 250 index. The company’s approach to investment includes potential engagement in fixed-price forward-funded developments that are pre-let to credible tenants, without taking on direct development risks.

For the year commencing 1 April 2023, LXi REIT is targeting a dividend payout of 6.6 pence per ordinary share, reflecting its commitment to delivering shareholder value through consistent income streams. This objective, while ambitious, is not a guarantee of future earnings but a testament to the company’s strategic planning and market position.

This sale to Travelodge not only capitalizes on the value inherent in LXi REIT’s portfolio but also aligns with the company’s long-term investment strategy, focusing on income protection and growth through inflation-linked leases. As LXi REIT continues to navigate the UK’s commercial property landscape, this transaction highlights its capacity to execute significant deals, enhancing its portfolio’s quality and income resilience.