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Ancoats Manchester has secured a loan of £15.7m to develop a new 154-key Motto by Hilton hotel in Manchester’s East Village.
It will mark one of the first Motto hotels to open in the UK, as Hilton expands the brand’s international footprint following launches in New York, Rotterdam, and Tulum.
Located near the Etihad Stadium and Co-op Live Arena, the hotel will offer modern, tech-enabled guestrooms, along with Motto Commons areas, which feature a bar, café, and co-working space. The concept also features linking and flex rooms.
The £15.7m facility provided by the bank OakNorth will fully fund development and finance costs over a 25-month construction period, before converting into a trading facility for the hotel’s operational phase.
The project has already received planning approval, and construction is expected to begin later this year with practical completion anticipated by Q3 2026.
The project is being spearheaded by Adi Hodzic of Dean Street Developments, alongside Jeff Britnell of Assured CMS.
Adi Hodzic, development manager, said: “The Hilton Motto brand is a great fit for Manchester’s vibrant and evolving cityscape. With OakNorth’s support, we’re confident in delivering a best-in-class hospitality experience that speaks to the next generation of travellers.
“It’s incredibly rare to find a funding partner that not only understands the nuances of hotel development but is also willing and able to provide a facility that covers 100% of the development and finance costs, and then flexibly converts into a trading loan. OakNorth is one of the few banks out there that can structure deals like this making it the ideal banking partner for our business.”
Deepesh Thakrar, senior director of Debt Finance at OakNorth, added: “This deal exemplifies our commitment to backing high-quality, forward-looking hospitality developments in prime UK locations, as well as our ability to provide umbrella facilities, where we’re able to support the business in the buy, build, and stabilise of the hotel all under one agreement.
“This means the team can cut out the time needed to refinance once the hotel is built, saving them a big headache further down the line. Adi and the team have an outstanding track record and a strong vision for bringing Hilton’s Motto brand to life in Manchester, so we’re proud to play a role in supporting this exciting regeneration project.”
