Aviva Investors is understood to be funding Property Alliance Group’s development at 55 Portland Street, which will see the existing office demolished and replaced by a 17-storey, 329-bed hotel.
The investor is set to back the hotel, which is to be operated by Irish firm Dalata Hotel Group under its four-star Clayton brand, ahead of a start on site by main contractor Russells in November this year.
The proposals by architect Stephenson Studio feature 329 bedrooms over 17 storeys, with a restaurant at ground floor and mezzanine level. Plans were lodged in March this year and approved late last month, and PAG is targeting a 2021 completion date for the project.
The original office block is currently being demolished; PAG previously gained planning consent in 2016 to create 110,000 sq ft of refurbished office space on the site.
Construction of a hotel on a neighbouring plot is already under way and is due to be operated by Bespoke Hotels. Currently being built by Marshalls, this will feature 183 beds, a casino, and a restaurant.
Alongside Stephenson Studio, the professional team also includes GVA How as planner.
Speaking after the project received planning consent in June, Andy Lavin, development director at Alliance said: “This scheme has been developed to meet the huge demand for hotels in Manchester city centre. Investment across the city is rising and that’s also reflected in our 3 St Peter’s Square development, which will comprise two hotel operators within the same building.
“The site is very well suited to a hotel, providing easy access to Piccadilly, the Northern Quarter and Oxford Road. It will help to increase footfall for the surrounding restaurants and leisure providers, and complement the city’s thriving business and tourism offer.”
Aviva Investors declined to comment.