Northern Irish builder-developer McAleer & Rushe has sold the Jurys Inn hotel in Brighton for £28.2 mln (€40 mln), reflecting a net initial yield of 5.25%.

Northern Irish builder-developer McAleer & Rushe has sold the Jurys Inn hotel in Brighton for £28.2 mln (€40 mln), reflecting a net initial yield of 5.25%.

Jury's Inn Brighton was built beside the city’s trail station in 2008. The buyer was the Charities Property Fund.

The vendor said the sale was a positive indicator for its City View office building, a six-storey speculative development next to the hotel which has been under construction since February.

Stephen Surphlis, property director for McAleer & Rushe, said: ‘We think there is a very strong investment story for Brighton and are confident of securing headline rents for City View.

‘The hotel has performed very well but we decided to take advantage of the strong demand for regional hotel assets and the uplift in covenant strength following Lone Star’s acquisition of Jury’s Inn in January.’

McAleer & Rushe was advised by Steerforth Partners. The Charities Property Fund was advised by Cooper Rose and Gerald Eve.

The builder-developer sold four regional Jurys Inn hotels to separate buyers in July for £80 mln, at a blended net initial yield of 6.9%. They included the Jurys Inn in Derby, which was bought by the Charities Property Fund for £14.9 mln.