A pension fund has bought the freehold of the Travelodge London Southwark in Union Street for £56.3 million.
Lothbury Investment Management has bought the hotel for a major UK pension fund.
"This is an important purchase for the fund," said Mike Toft, senior fund manager and executive director of Lothbury Investment Management.
"With 30 years remaining and reviews linked to RPI, with no cap, it has a very attractive lease structure and excellent residual value that fits well within the portfolio of prime assets held for this major UK pension fund.
"Its location next to Southwark Underground Station and close to the south bank of the River Thames is well established but also rapidly evolving, so will provide the fund with attractive longer term redevelopment opportunities."
For the latest local news and events direct to your inbox every Monday, you need our weekly email newsletter SE1 Direct.
7,000+ locals read it every week. Can you afford to miss out?
Read the latest issue before signing up