PATRIZIA sells Melia Hotel building in Manchester
PATRIZIA Immobilien AG has sold its Melia Hotel building in Manchester for approximately £30m to a privately owned UK group. The sale of the 208-room four-star hotel has been agreed at a yield of 4.85% on 25-year lease to Melia.
PATRIZIA purchased the hotel as part of its acquisition of the First Street site in Manchester in May 2015, a 20-acre development which includes office, residential, retail and leisure components. 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.
Operating as INNSIDE Manchester, a new brand by Melia, the hotel includes spacious rooms, a Mediterranean street food restaurant and a wellness centre including Finnish sauna. Located in the heart of the vibrant First Street development, the hotel is popular with both business travellers and leisure customers and allows access to the local cultural, shopping and business areas of Manchester.