Axiom takes over at MediaCity hotel
Following a selection process, Landsec has chosen a new operator for the 218-bedroom Holiday Inn at the Salford Quays complex.
Knight Frank advised Landsec, which took full control of MediaCity in November last year, buying out Peel’s outstanding 25% stake.
As part of that deal, 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 its behalf as a long-term partner as 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 sits at the heart of the 52-acre MediaCity, where further development plans are in the works for homes, workspace and “the reimagining of the waterfront”.
Landsec was advised by CMS and Knight Frank, and Axiom Hospitality was advised by Wordsmith Law.
Chris Field, associate in hotel agency at Knight Frank, said: “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 for MediaCity, said: “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.”
Much of the Axiom portfolio is with well-known brands such as Hailton and its Doubletree stablemate, along with Radisson Blu and Residence Inn by Marriott, in prime locations in and around London.
Jamie Lamb, co-chief executive of Axiom Hospitality, commented: “We are delighted Holiday Inn Manchester MediaCityUK has joined our growing portfolio and we have been successful in partnering with Landsec.”
Goodness have Peel sold EVERYTHING that’s decent now?
By Anon