The Radisson hotel in Manchester city centre will be extended into the vacant Theatre Royal building next door after owner the Edwardian London agreed a deal to buy the site from Benmore for an undisclosed sum.
Edwardian London was an eleventh hour rival to InterContinental Hotels Group which had been in talks for several years with Northern Ireland-based Benmore but failed to agree terms. The derelict site is reserved for a hotel in Manchester City Council's local plan.
The buyer said this morning: "Edwardian London will work with Manchester City Council and English Heritage in developing plans for the commercial use of the site which will include restoring elements of this potentially fine building and enhancing the experience for customers of Manchester's finest five-star hotel."
Edwardian London is a privately owned company controlled by Jasminder Singh. The net value of the group is £824m. The group spent £120m on new acquisitions in the past year and has a further £300m earmarked for 2013.
The group bought the Radisson Blu Edwardian Free Trade Hall Hotel in Manchester's Peter Street in autumn 2011 from administrators.