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Case Study - Hampton by Hilton, Manchester
Hampton by Hilton Blackpool

Hampton by Hilton Manchester Hampton by Hilton ManchesterHampton by Hilton Bedroom

Part of a large portfolio of properties once owned by West Properties (UK) Ltd whose debt was acquired by Morgan Stanley Real Estate in 2012. It had the complication of being part Freehold and part Leasehold in nature.

The Property, situated in Manchester City Centre’s Northern Quarter and close to both the Co-op Noma Development and The Manchester Arena, had previously had the benefit of both Residential and Commercial planning approvals, both of which had expired.

The steel frame structure includes the provision of basement parking and boasts a contemporary façade, sympathetic to the surrounding warehouse buildings of the Manchester skyline. The finished building will have low carbon emissions and energy demands.

Client Create Developments (Manchester) Ltd
Project TypeNew Build Hotel
Value 25 million
Duration 92 Weeks
Rooms 221 Beds
Completion Early 2020
Development Logos

DEVELOPMENT CHALLENGES

  • Complex multi-party transaction with concurrent legal agreements to achieve financial close. Freehold and Leasehold status of the site and re-negotiation of incompatible existing lease.
  • Identification and selection of the most appropriate hotel brand and optimum service level offering within Manchester’s competitive hotel market.
  • Tight, logistically challenging city centre site with development to the redline boundary.

DEVELOPMENT OUTCOMES

  • Negotiated the off market purchase of the property from Morgan Stanley.
  • Managed the full design process of a 221 bed Hilton branded hotel, complete with 20 year franchise agreement and 10 year operating agreement.
  • Submitted and secured a new planning permission from Manchester City Council in partnership with Deloitte’s, our planning specialist partner.
  • Agreed and re-geared the existing lease for the part leasehold element with Manchester City Council Estates, the landlord.
  • Achieved enhancement to land value as a result of securing the planning permission and negotiated re-gear of the existing lease.
  • Sale of development vehicle, at financial close, with all components and agreements in place to ensure the successful delivery of Manchester’s first Hampton by Hilton.
  • Hotel currently under construction and due to complete early 2020.