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Whitbread has agreed a pre-let agreement with Ask Retail Estate, the Richardson Family and Patrizia to operate a 200-room Premier Inn at the First Street Development in Manchester.
The hotel operator will occupy the top five floors of a the 16 storey mixed-use development which secured planning permission in December 2018. Construction of the new building will start in summer 2019 with completion due in early 2021.
The deal will simultaneously see a second joint venture partnership between Ask Real Estate, the Richardson family and Whitbread bring forward a planning application to redevelop the existing Premier Inn Deansgate Locks hotel site, adjacent to First Street, with a separate c.480,000 sq ft mixed-use scheme. A planning application for the development is expected to be submitted to Manchester City Council in May 2019.
John Hughes, managing director of Ask Real Estate, said: “With a projected lack of Grade A office space in the city from 2021 we will be bringing forward much needed, high-quality and flexible office space to a buoyant market and are delighted to announce Premier Inn as the building’s first tenant.
“Given the high level of demand we saw from a broad range of businesses for N08, which was 80% pre-let before practical completion, we are confident that there is capacity in the office market for further development at First Street. This is the latest step in the on-going evolution of the First Street neighbourhood which is the proven mixed-use destination we envisaged.”
Nicholas Johnston, acquisition manager for Northern England at Premier Inn, added: “As a major investor in Manchester we are continually looking at our portfolio of Premier Inn hotels to ensure we are in the best possible locations and provide a consistently high-quality experience for our guests.
“The decision to redevelop the Premier Inn Deansgate Locks site and bring a latest generation Premier Inn hotel to First Street reflects this. Working with ASK Real Estate and its partners, we are able to increase the number of Premier Inn bedrooms in the popular micro-location and bring our latest format to the area. It’s an excellent opportunity to improve our portfolio in the city and be part of one of Manchester’s most successful business and leisure destinations.”
