LaSalle Investment Management has bought a 150-room budget hotel in London for £40m (€45m).

The $60bn (€51.33bn) manager said it acquired the hotel located at Grafton Place, adjacent to Euston station from a syndicate of private investors. The hotel is single-let to Travelodge Hotels until 2043.

Sophie Simmonds, a fund manager at LaSalle Investment Management, said: “We’re pleased to have originated and completed this off-market acquisition, which meets our investment criteria of investing in long-let, index-linked assets in strong locations.

“There are a number of very strong medium- and long-term drivers that contribute to the asset’s attractive return profile over the remaining lease term. These include the devaluation of sterling encouraging both foreign visitors and permanent residents to holiday in the UK, London’s established position as one of the world’s leading hotel markets and the major redevelopment of Euston planned over the coming decade.”

Alan Tripp, the head of UK at LaSalle Investment Management, said: “I am happy that we can announce this acquisition in an excellent location close to Euston station.

“This is the latest of a number of inflation-linked assets that we have acquired; meeting strong demand from our clients to assist them with their liability matching investment strategies.”

LaSalle were represented by John Miles & Company and Gerald Eve.