Hotel operator to sell building to Paradise developer

A major Birmingham city centre hotel is set to sell for £17.2m.

The Caterer reports that Millennium & Copthorne (M&C) will offload its Copthorne Hotel Birmingham to Paradise Circus Limited Partnership, a joint venture between Paradise developer Argent and Birmingham City Council, in the third quarter of 2021.

The origins of the deal go back seven years when M&C agreed a compulsory purchase order agreement with the two parties.

M&C had agreed an option for a new hotel on the Paradise site, but it failed to reach an agreement with Argent or the City Council by a April 2 deadline and terminated the option to buy an alternative site.

In October, Argent submitted a planning application for a 49-storey Octagon residential tower, continuing the latest phase of the £700m Paradise Birmingham scheme.

The 49-storey, 510 feet tall tower will create a new landmark for the city as well as provide up to 346 homes.

There will be a mix of one, two and three bed homes, including some at affordable rents for key workers.