55 Portland St CGI

Aviva deal completed on £60m Manchester hotel

Work has started on the Clayton Hotel development in Portland Street following the completion of a funding deal between Property Alliance Group and Aviva Investors.

Located at 55 Portland Street, the 17-storey, 329-bed hotel is being brought forward by Property Alliance Group, with Aviva Investors acquiring the pre-let investment in a deal revealed by Place North West in July 2018. It replaces a 50-year-old office block on the corner of Sackville Street, which has now been fully demolished.

The facility will be operated by Dalata Hotel Group under its four-star Clayton Hotel brand. It includes a ground-floor bar with restaurant at mezzanine level as well as a business centre with meeting rooms.

Alex Russell, managing director of Alliance, said: “With funding now in place and the complex demolition of the office building complete, we’re looking forward to seeing the new hotel rapidly take shape.

“Portland Street is a prime location for hotels as it is so well connected to shops, offices and local transport links. The site offers a significant opportunity for Dalata, adding to its hotel at Manchester Airport and meeting the demand for high-quality accommodation and corporate facilities in the heart of the city centre.” Dalata has also got the 278-bedroom Maldron hotel at Charles Street in the works.

John Osborn, director, real estate at Aviva Investors, said: “Manchester is one of the core investment locations for our real estate business. This acquisition provides the Aviva Linked Property Fund with a secure 35-year income with RPI uplifts, underpinned by a premium hotel asset in a prime city centre.”

Russells Construction is the main contractor for the scheme. The Clayton will be Russells’ third concurrent hotel build in central Manchester, alongside the new Circle Square hotel and the Motel One and StayCity development off St Peter’s Square.

Russells will commence piling this month followed by creation of the in-situ frame to form the first three floors including the mezzanine. Installation of the pre-cast concrete for the 17-storey shell will then follow. A tower crane will be erected within the footprint around which the building will be constructed, to reduce impact on the surrounding streets.

The concept and external fabric for 55 Portland Street has been designed by Stephenson Studio with Leach Rhodes Walker responsible for design delivery. Building services designs are being provided by Ridge & Partners, and WSP is responsible for the structural design.

A team from Kuits provided legal and commercial advice to Property Alliance Group on the funding agreement. CBRE acted for Aviva.

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I stayed in the Clayton in Leeds, great hotel in a wonderful city, would recommend.

By Nice

This looks good.

Wish they would turn the car park to the rear into a park though.

It would be even better if they turned the coach station into a park and opened this area up completely, although would require some hard maintenance. Based on the Framework for the area this won’t happen though :(

By Danny

Danny is right. That coach station needs to be relocated.

By Elephant

Another awful building to add collection

By Jose

Come on Jose……what would be a good scheme if this is awful?

By Brighteed


By Oh dear dear

This is absolute tat and looks dated already.

By Acelius

I think that they should be made to design something much better and then remove coach station and spend on creative planting, landscaping with real bins and real lights, maybe a couple of boules courts (petanque), there basically 3x8metres of pea gravel. Only maintenence required is a 5 minute going over with a rake. Oh and some score boards (led) sausages and beer. Is this possible?

By Robert Fuller