A Birmingham city centre hotel has been sold for £26.55 million and committed to two more decades here.
Standard Life Assurance has acquired the 152-bedroom Premier Inn in Waterloo Street from a syndicate of private investors.
Mark Johnson, a director of MK2 Real Estate which advised the seller, said the deal had set a new benchmark for regional hotel yields.
He said: "The price reflects a net initial yield of 4.12 per cent.
"By agreeing a 20-year lease extension with Premier Inn on sale, we were able to achieve maximum value for the asset and our client.
"The sale attracted lots of interest with a number of institutional investors competing to secure the deal and bidding significantly ahead of the asking price.
"This demonstrates confidence in Birmingham and the booming hotel sector."
The seven-floor hotel is let to Premier Inn until 2037 and has the 80-seat Bar + Block restaurant on the ground floor.
BNP Paribas advised Standard Life on the acquisition and the seller was also represented by Downing.