The acquisition, which is subject to planning permission, will see the company convert the property at 14-22 Lands Lane into a 94-bedroom hotel, expected to open in 2018. The total cost of the acquisition and conversion is expected to be around £5m.
The building – originally The Scala Theatre constructed in 1922 – is based within the pedestrianised area of Leeds city centre and located close to city’s main shopping centres; The Victoria Quarter; The Light scheme; and Trinity shopping centre.
Guy Parsons, CEO, said: “Leeds – a northern powerhouse city – is already a major regional employment hub, which will be further supplemented by the significant planned developments for the city, including the redevelopment of the former Tetley Brewery, Leeds Dock shopping area and HS2.
“Leeds is the eighth most-visited city in the UK, attracting 25 million people each year with major visitor attractions including the First Direct Arena, O2 Academy, Leeds United stadium at Elland Road and Headingley Stadium, home to the city’s rugby league team and Yorkshire County Cricket Club.”