INNSIDE Manchester hotel sold for £30m

PATRIZIA has sold its Melia Hotel building – branded INNSIDE Manchester – in the First Street area of the city for more than £30m.

PATRIZIA Immobilien AG offloaded 208-room four-star hotel the property on a 20-acre site to a privately-owned UK group.

The sale has been agreed at a yield of 4.85% on a 25-year lease to Melia.
PATRIZIA bought the hotel as part of its acquisition of the First Street a 20-acre development which includes office, residential, retail and leisure components, in May 2015.

The company says as progress continues elsewhere at First Street, the sale of the hotel crystallises the asset management activity which has taken place at the building and allows PATRIZIA to reinvest capital in other development management initiatives.
INNSIDE Manchester includes spacious rooms, a Mediterranean street food restaurant and a wellness centre including Finnish sauna.

The hotel is popular with both business travellers and leisure customers and allows access to the local cultural, shopping and business areas of Manchester.
Rob Brook, head of portfolio management PATRIZIA UK & Ireland, said: “First Street continues to thrive and the sale of this quality hotel in the heart of the scheme is a testament to its success.

“Investor interest is high as this once under-utilised area of Manchester is blossoming into hub for entertainment, working and living.
“With our asset management activities complete at the hotel, this is the first sale we have undertaken at First Street and now means we can recycle our balance sheet in new development management initiatives being pursued by PATRIZIA.”

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