Knight Frank has advised Landsec on the selection of a new operator for the 218- ensuite bedroom Holiday Inn Hotel at the heart of MediaCity, in Manchester.
As part of Landsec’s acquisition of Peel group’s remaining stake in the estate towards the end of last year, Landsec acquired the hotel free from management and subject to the ongoing franchise agreement with IHG under the Holiday Inn brand.
Therefore, the UK REIT wanted to select a third-party hotel operator to manage the hotel on their behalf and who they would consider a long-term partner as their plans for the estate, and the hotel, are developed over time.
As part of the operator selection process run by Knight Frank, Axiom Hospitality, which has a rapidly growing portfolio that currently stands at 33 hotels across the UK, has been selected to operate the hotel on a ‘hybrid’ management lease.
The hotel, which sits at the heart of the 52-acre MediaCity, which is regarded as the UK’s leading creative, digital and tech hub is set to benefit from future phases of the scheme that include proposals for additional homes, workspaces and the reimagining of the waterfront.
Landsec was advised by CMS and Knight Frank, and Axiom Hospitality were advised by Wordsmith Law LLP.
Chris Field, Associate, Hotel Agency, Knight Frank, commented: “To follow on from assisting on the acquisition of the hotel, we are extremely pleased to have advised Landsec on the selection of a suitable hotel operator on a commercially beneficially lease structure for this strategic hotel at the heart of MediaCity. This lease structure will deliver the income required by a REIT while also creating a strong incentive for owner and operator to work together to drive trading performance. Axiom Hospitality are one of the the leading third-party operators of premium hotels across the UK and we believe they are a suitable partner to work alongside Landsec to create a new popular destination and focal point at the heart of MediaCity.”
Chris Reay, Regional Asset & Leasing Director, MediaCity commented: “MediaCity has huge potential. Since Landsec acquired the remaining stake last November, we’re focused on building on its success as the UK’s leading creative, tech and digital hub. By investing in its quality of place, including appointing a best-in-class hotel operator for the Holiday Inn that serves the many visitors to MediaCity, and enhancing the residential and workplace offer, we can provide the full package to the media industry.”
Jamie Lamb, Co-CEO, Axiom Hospitality, commented: “We are delighted Holiday Inn Manchester MediaCityUK has joined our growing portfolio and we have been successful in partnering with Landsec. Located within easy access to Old Trafford stadium and the city centre, this hotel is the ideal base for visiting Manchester and we are looking forward to welcoming guests for city stays or meetings and events.”
