£10m hotel for city’s Northern Quarter

A £10m 192-bed Holiday Inn Express hotel is to be built in Manchester’s Northern Quarter, it emerged today.

Ician Developments has struck a deal with Manchester City Council and Merseyside-based Centre Island Hotels for the new hotel, which will be built on a plot adjacent to the Crowne Plaza hotel.

Work has now begun on the three-star hotel, which is due to open in summer 2011 and will create more than 35 full and part-time jobs.

The A £10 million funding package for the project was provided by The Co-operative Bank’s Liverpool Corporate Banking Centre.

The deal brings forward the fifth phase of development and work is now being carried out at the Smithfield site to assess potential options for the sixth and seventh phases – which will include the redevelopment of the Grade 2 listed Victorian ‘Mackie Mayor’ building. The scheme has been masterplanned for further development to incorporate the listed building, which will require sensitive restoration.

Mike Payton, director at Ician – a subsidiary of Salford-based Muse Developments- said: “Smithfield is a landmark regeneration scheme which has helped Ician to stamp its mark on mixed-use development in brownfield locations.

“The development of a new, contemporary hotel is another exciting step forward in this pioneering scheme, which has been instrumental in helping to retain and enhance the area’s rich culture and diverse range of amenities.

“The development of a new, contemporary hotel is another exciting step forward in this pioneering scheme, which has been instrumental in helping to retain and enhance the area’s rich culture and diverse range of amenities.”

The eight-floor Holiday Inn Express, a brand owned by the InterContinental Hotel Group (IHG), will have an illuminated exterior that fits in with the modern design of nearby buildings, and work will include the development of the new Smithfield Square. Centre Island Hotels also manages the adjacent upper four-star Crowne Plaza hotel on the corner of Swan Street and Shudehill, which opened in August 2008.

Martin Griffiths, managing director of Centre Islands Hotels, said: “The new Holiday Inn Express will be a mid-market hotel in a prime location in Manchester’s Northern Quarter, near to the MEN Arena, Printworks, and all city centre attractions.

“The new hotel will complement the existing Crowne Plaza, offering business and leisure visitors a range of accommodation options. This is another significant project for Centre Island Hotels, growing our portfolio, and continuing our good relationship with The Co-operative Bank’s Corporate Banking team in Liverpool.”

Sir Howard Bernstein, chief executive of Manchester City Council, said: “The Northern Quarter has seen a huge amount of change since the early 1990s, establishing its identity and making a major contribution to what the city centre has to offer. The Smithfield scheme has played a significant role in that transformation and this new hotel is a further welcome illustration of investor confidence in the area.

“The scheme has already helped attract new businesses and residents to the area and we’re confident that the latest phase of the development will continue to act as a catalyst for investment.”

Dave Mathews, senior business development manager at The Co-op Bank added: “Martin and his team have a proven track record of successfully running hotels across the North West, and working with the other partners involved we are sure this Holiday Inn Express will be a successful addition to Manchester’s hotel sector.

“This deal once again shows that if the business proposal is right, The Co-operative Bank has funding available.”