Manchester’s Hotel Brooklyn changes hands in £24m deal

Singaporean investor CDL Hospitality Trusts has acquired the 196-year head lease of the 189-bedroom Portland Street asset from Roundapple Hotel Partners through a share purchase agreement. 

CDLHT’s latest Manchester investment follows a £78m forward funding deal struck last year for the Castings, a 352-apartment build-to-rent scheme.

The company’s £24.1m acquisition of Hotel Brooklyn represents a net property income yield of 7.4%. It will see the REIT receive £2.3m a year in rent from HLD (Manchester), the hotel’s occupational leaseholder. 

HLD is part of the Marshall group of companies that also developed Manchester’s Hotel Gotham. HLD subleases the hotel to Bespoke Hotels, which manages the venue.

Roundapple, owned by RAHoldingsUK, will continue to hold the property following the completion of the acquisition, according to CDL. 

The acquisition of the property allows CDLHT to “further penetrate the lifestyle hotel market”, it said. 

“With its growing stable of lifestyle hotels, CDLHT’s hotel portfolio will be augmented with better alignment with prevailing trends in the global market of strong consumer appetite for such hotels,” the company added. 

The investor also owns Salford’s Lowry Hotel.