May 13, 2022
Marrico Asset Management and Helios Real Estate have signed a forward funding deal with UK Commercial Property REIT Limited to build a 305-bed hotel to be operated by Interstate Group under the Hyatt brand. The £62.7 million hotel will be developed by the partnership on their Sovereign Square site in the City Centre adjacent to the Railway Station.
Richard Bland of Marrico said
‘The acquisition is in line with UKCM’s strategy to take exposure to operational real estate sectors that are expected to deliver resilient rental incomes. The hotel will be operated under a lease by Interstate Hotels, a leading international hotel operator, with UKCM’s rental income based on the income generated from the operation of the hotel’
Mark Barnes at Marrico confirmed Construction will begin immediately. The 12-storey hotel will be amongst the very best in Leeds, a city with excellent central amenity but an under-supply of quality hotels. It is scheduled to complete in 2024 and will have a 25-year franchise agreement in place with Hyatt Hotels, one of the largest global hotel brands with aspirations to grow its presence within the UK. The 305 rooms will be split between the short stay Hyatt Place and the long stay Hyatt House brands. The premium hotel will provide meeting rooms, a gym and several food and beverage options, including a rooftop bar.
Helios Trevor Cartner said
‘This is the last available site at Sovereign Square and we have commissioned a suitably impressive building to complete the development. The hotel will be a fantastic addition to the Leeds market which we believe will continue to grow. Our investment will sit alongside UKCM’s for the medium term so the hotels success will determine ours.’
DLA Architects have designed the building and RBA will be Project Managers. BNP Paribas acted for Marrico and Helios in the sale. Square One Law acted as advisers and legal representative