The £47m scheme by a joint venture between Catalyst Capital and Sir Robert McAlpine Capital Ventures has started on site at Manchester’s Oxford Road.
The 17-storey, 278-bedroom Maldron hotel obtained planning permission in May.
Catalyst acquired the site and secured its planning consent before pre-letting the development to Dalata. The scheme is forward-funded by Aviva Investors. McAleer & Rushe has been appointed to carry out the design-and-build works.
Dan White, development director at Catalyst Capital, said: “We are excited to be on site today with McAleer & Rushe and to see this development move to the construction stage. The development of this Maldron hotel will add to the Oxford Road corridor’s strategic importance in the city.
“The high quality of the hotel’s design will complement the Circle Square masterplan opposite and should be completed in a similar timeframe.”
Shane Casserly, head of development and strategy of Dalata Hotel Group, said: “This will be Dalata’s third hotel in Manchester as we already successfully operate a Clayton Hotel at Manchester Airport and are committed to operating a new Clayton Hotel on Portland Street, currently under construction and scheduled to open in mid-2021.”
“Manchester is a core investment location for our real assets business and this acquisition is key to our wider strategy in this market” according to Rhy Evans, director of real estate at Aviva Investors.