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£62.7m hotel to open in Leeds in 2024

The 140,000 square feet property will have a 25-year franchise agreement in place with Hyatt Hotels, and it will be operated under a lease by Interstate Hotels and Resorts

Plans have been unveiled to open a new £62.7m hotel in Leeds that will comprise of over 300 bedrooms.

The 12-storey hotel is scheduled to complete in 2024 and it will have a 25-year franchise agreement in place with Hyatt Hotels as the company plans to grow its presence within the UK. The hotel will be operated under a lease by Interstate Hotels and Resorts. 

The 140,000 square feet property will comprise 305 rooms, split between the short stay Hyatt Place and the long stay Hyatt House brands. It will comprise meeting rooms, a gym and several food and beverage options, including a rooftop bar. 

The development has been acquired by UK Commercial Property REIT Limited (UKCM), from Marrico Ltd, a joint venture between Marrico LLP and Helios.

The site was previously owned by Leeds City Council, and UKCM is to fund the development, which is to be completed by Marrico.

UKCM said Leeds has an under-supply of quality hotels, and that the acquisition is in line with its strategy to invest in operational real estate sectors that are expected to deliver “resilient” rental incomes.

Will Fulton and Kerri Hunter, fund managers at UKCM, said: “By investing in this way in compelling locations with strong market dynamics and teaming up with strong, reputable tenants, we are able to obtain a yield that is at a significant premium to that which would be derived from a traditional leasing model.

“Not only will this hotel benefit from a significant supply-demand imbalance of quality accommodation in Leeds and be operated by one of the world’s leading international hotel firms, it is also designed to be future fit with strong ESG credentials and a flexible split between short and long stay brands, as well as external food and beverage options.”

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