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.”


There’s being inspired by and then there’s copying. This is literally the [cheaper] hotel version of Tim Groom’s House of Social in Manchester.
By Anonymous
Why more hotel rooms
By Anonymous
This part of Chester – between the canal, Frodsham Street and Foregate Street needs sorting out. Tesco is a blot and very rundown, the old BHS has been empty for years and in reality wont be occupied any time soon. Both massive units need levelling and lost streets need knitting back together with appropriate smaller scale buildings in the Chester architectural style. Boots could be reconfigured to free up more space. This area could have townhouses, apartments, offices and food outlets, with a public square at Queens Street/Queens Place. Existing retail units could be adapted to provide residential use on disused upper floors.
By GetItBuilt!
Is the Building at the side of the Property (Marsden House) going to be knocked down? It was built by a lot of fund raising by my husband, Trefor Owen, from Social Services, as a day centre for Youngsters with life problems to have somewhere to go to during the day. And I would not like it to be knocked down after all the effort used to build it.
By Noreen Owen
What a horrible, unimaginative cheap design. Should be a very attractive lower rise building sympathetic to it’s canalside location. Very disappointing but typical of CWAC to approve
By Davmark23
Absolute nightmare for those living on Hoole Lane without updated transport links. Options for access are from the busy Christleton Road area or from the back of Hoole along Lightfoot street or Canadian Avenue. Absolute Horrible decision as it stands to allow this. Transport links must be improved first to negate the additional traffic!
By Anonymous
I’ve seen this building before but on a different site in a different location. I am capable of looking on the bright side, but I didn’t like the first one.
By vicar in a tutu
All we need another hotel. Housing would have been better, not another high-rise monstrosity.
By Anonymous
It does look ugly – no character at all. I would rather keep the front facade of theatre and turn it into a small boutique hotel instead.
By Karl C.
Any parking space
By Vikki