Building work starts on new £60m hotel
Building work is to start on a new £60m hotel in Manchester city centre.
The hotel on Portland Street will be 17-storeys and have 329-beds.
It is being brought forward by Property Alliance Group with Aviva Investors acquiring the pre-let investment.
The new hotel will replace a 50-year-old office block on the corner of Sackville Street, which has now been demolished.
The hotel will be operated by the Dalata Group under its four-star Clayton Hotel brand and will create around 140 jobs.
It will include a ground-floor bar with restaurant at mezzanine level as well as a business centre with meeting rooms.
Alex Russell, managing director of Alliance, said: “With funding now in place and the complex demolition of the office building complete, we’re looking forward to seeing the new hotel rapidly take shape.
“Portland Street is a prime location for hotels as it is so well connected to shops, offices and local transport links.
“The site offers a significant opportunity for Dalata, adding to its hotel at Manchester Airport and meeting the demand for high-quality accommodation and corporate facilities in the heart of the city centre.”
John Osborn, director of real estate at Aviva Investors, added: “Manchester is one of the core investment locations for our real estate business.
“This acquisition provides the Aviva Linked Property Fund with a secure 35-year income with RPI uplifts, underpinned by a premium hotel asset in a prime city centre.”
Dermot Crowley, deputy chief executive of business development and finance at Dalata, said: “We are delighted to be working with Property Alliance Group and Aviva Investors on this development and look forward to bringing a four-star Clayton hotel to a prime location in Manchester.
“Manchester is an important city for Dalata as we currently operate a Clayton Hotel at Manchester Airport and have committed to a 278-bedroom Maldron Hotel on Charles Street.
“As we continue to grow our business across the UK, people development is a key driver of success for us. Staff recruited for the 140 roles at Clayton Hotel Manchester City will get the opportunity to participate in our established development programmes ensuring that they grow and progress with the business”.
Russells Construction is the main contractor for the scheme, bringing extensive expertise in providing a turnkey hotel service and undertaking tight city centre projects.
The Clayton will be Russells’ third concurrent hotel build in central Manchester, alongside the new Circle Square hotel in Princess Street and the Motel One / StayCity Apartments hybrid at 3 St Peters, all of which are being delivered using their ‘collaborative’ working model.
Gareth Russell, Director of Russells Construction, said: “With a turnkey project such as this, early engagement delivers significant benefits to the overall design and buildability of a project.
“This collaborative working model gives clients the certainty they need about the chosen construction method, programme, and budget, and gives us the control we need to ensure excellence of delivery.
“Working closely with the client and the operator in the pre-planning phase, we have assisted in putting together a skilled team of experts to interpret the ambition and achieve the quality of design and specification they require, while also ensuring the buildability of the scheme is within the client’s budget.
“We have selected the most efficient construction methods for the building’s location and logistical constraints, while safeguarding the design intent and quality.
“That can only be achieved through a collaborative approach with forward-thinking clients, such as Alliance and Dalata, allowing us to make the most of the team’s experience and skills.”
Russells will commence piling this month followed by creation of the in-situ frame to form the first three floors including the mezzanine. Installation of the pre-cast concrete for the 17-storey shell will then follow.
A tower crane will be erected within the footprint around which the building will be constructed, a technique Russells has successfully employed on previous city centre builds for Motel One and at Axis, to reduce impact on the surrounding streets.
The busy location and proximity to other building projects will require active liaison with neighbouring contractors, the city council and the client, to minimise disruption and deliver on programme by the latter part of 2021.
The concept and external fabric for 55 Portland Street has been designed by Stephenson Studio with Leach Rhodes Walker responsible for design delivery. Building services designs are being provided by Ridge and Partners, and WSP is responsible for the structural design.
A team from Kuits provided legal and commercial advice to Property Alliance Group on the funding agreement. The Kuits team was led by Adam Hymes, Partner and Head of Development in the commercial property team.