Contractor appointed for 144-bed Chester hotel
AC1 Construction’s major projects division will build an Ibis Styles on the former Mecca Bingo site in the city centre for TAG Developments.
The appointment of a contractor follows the unveiling of a franchise agreement with Accor brand Ibis Styles in January.
AC1’s selection as main contractor for the 144-bed Chester hotel sees the firm add to a growing pipeline of projects in the North that includes Capital&Centric’s Astley Place in Newcastle-under-Lyme and Blacklight Capital Partners’ 202-bed PBSA in Liverpool.
AC1 is also on site nearby delivering a 12,000 sq ft office refurb for IWG.
The main construction phase of the Union Terrace hotel is due to begin in September and is scheduled to conclude in 2028.
Shane Kelly, director of major projects at AC1 Construction, said: “This is an excellent project for our team and one that aligns perfectly with our growing hotel and mixed-use portfolio.
“Following completion of the demolition works, we are looking forward to commencing construction later this year and delivering a successful project for all stakeholders.”
Luke Averill, founder of TAG Developments, said: “The appointment of AC1 Construction represents another important milestone for the project as we move towards the commencement of the main construction phase.
“Their team has demonstrated a clear understanding of the project objectives and we are looking forward to working together to deliver a high-quality hotel that will contribute positively to Chester’s regeneration and visitor economy.”

