Works completed on new city centre hotel

CBRE Investment Management, on behalf of CBRE UK Property PAIF, (the fund) has completed development of a new 188-bed Premier Inn hotel in York.

Premier Inn has signed a lease agreement for 25 years on the building.

CBRE Investment Management’s (CBRE IM) main contractor, Clegg Construction, constructed the four-storey building on a one-acre plot, formerly the location of a retail warehouse leased by Carpetright.

The hotel is on Foss Islands Road, close to York’s historic centre and features multiple energy-saving technologies.

Jamie Philips, fund manager for UK Property PAIF at CBRE IM, said: “We expect growth in the hotels and catering sector to outpace the wider economy during the next five years.

“Tourism supports a significant number of jobs in York and given the strength of the city as a destination for tourists, combined with its current undersupply of hotel beds, the addition of a new modern and sustainable hotel will help to bolster York’s businesses and economy.

“This project sits firmly within the fund’s strategy, providing a great opportunity to thoughtfully invest in and repurpose an existing asset, in order to create a long and sustainable cash flow for our investors.”

Clegg Construction managing director, Michael Sims, added: “We are tremendously proud to have delivered such a sustainable Premier Inn hotel for CBRE Investment Management and Whitbread PLC.

“The site is a historically sensitive city centre location in York, and I am pleased with how the Clegg Construction team conducted themselves with minimal disruption to local businesses and residents.

“As a company, we’re very happy to have now handed over this new development which I am sure will be an asset to York and its tourism and business communities, along with the local economy.”