Secure Income Reit (SIR) - which owns real estate assets such as Alton Towers and Thorpe Park - has today announced the acquisition of 55 Travelodge hotels.
The £196m acquisition is expected to increase SIR's rents by £13.7m; SIR expects a yield of seven per cent, which will rise to 7.3 per cent in October next year.
The group said the agreement is conditional on a £140m placing of shares at a price of 298.6p per share.
The move comes after Travelodge completed a £100m refurbishment on its hotels - including those that SIR is acquiring. It was an off-market deal with Prestbury Investments.
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"Prestbury Investments and its associates' historical knowledge and experience of the portfolio has been a key feature in sourcing and structuring this off-market transaction," SIR said.
The portfolio consists of 3,096 rooms across England and Scotland with an average lot size of £3.5m. Each hotel will be let to Travelodge.
SIR said the portfolio is "highly complementary" to the company's existing assets. The acquisition went ahead after discussions with the company's larger shareholders.
"The board has been encouraged by the positive feedback received," SIR said.
The investment trust also owns a number of hospitals, including the Nightingale Hospital in Mayfair and Reading Hospital.