Dominvs Group, the real estate investment, development and asset management company, has completed the sale of the Holiday Inn Manchester City Centre to a controlled affiliate of Starwood Capital Group. Whilst the price was undisclosed, the deal represents one of the largest hotel transactions so far of 2017 and is the largest single asset hotel sale in Manchester on record.
The landmark freehold site on Aytoun Street close to Piccadilly Station was acquired by Dominvs in 2013, and, together with their contractor McAleer & Rushe, embarked on a two-year project to secure planning and the build of the 298-bedroom property. The hotel, which opened in April 2016, incorporates the latest trends in hotel design and cutting technology, and is already ranked as one of TripAdvisor’s top hotels in Manchester.
Preet Ahluwalia, on behalf of Dominvs Group and the Ahluwalia family, commented: “We are very proud of our Manchester project and being able to deliver a fantastic property in an area which is going through a significant regeneration. In what is a competitive market, our management team have overseen a fantastic first year’s trading, with the hotel delivering above expectations. The decision to sell allows us to focus on our wider strategy, which is to grow our development pipeline in key gateway cities such as Bath, Cambridge and London.
Will Duffey, Executive Vice President at JLL’s Hotels & Hospitality Group, who advised on the sale, added: “The offering was a compelling play for investors, given the quality of build, accelerated ramp-up in its first year of trading and ultimately also its location in one of the strongest-performing markets in the UK. Developments such as the 200-acre MediaCityUK and the £800 million Airport City development will continue to underpin sustainable growth across the lodging sector in this particular market.”