Pall Mall Kier Property CTP Aerial

Leonardo Hotels agrees deal at £200m Pall Mall

Charlie Schouten

The hospitality company is understood to have agreed a deal to operate a 281-bedroom hotel at Liverpool’s Pall Mall, potentially kick-starting the wider £200m project.

Fattal Hotels, which operates the Leonardo brand, has agreed heads of terms for the 13-storey hotel, which forms a key part of the 400,000 sq ft scheme, which also features offices, leisure, retail, and a public square. The deal is understood to have been signed and is currently in solicitors’ hands.

A hybrid planning application for the site by developers Kier Property and CTP, covering a large swathe of the city around Bixteth Gardens and Exchange Station, was submitted last month. This includes full permission for a 112,000 sq ft office and public realm, along with outline permission for the hotel and two further offices.

While the office is unlikely to be developed speculatively, the hotel could help to kick-start construction at the wider site once the deal with Leonardo completes.

Contractor Willmott Dixon is currently on site carrying out remediation and relocating a substation; a main contractor for the offices or hotels is yet to be appointed but is likely to be appointed via a tender list from Liverpool City Council.

Future phases, covering land stretching to Leeds Street, are likely to include a wider mix of uses including residential and a multi-storey car park.

The development of the site has proved to be controversial, particularly around the remediation of Bixteth Gardens, which is currently being remediated to help support the scheme.

Campaigners unsuccessfully tried to halt the gardens being developed earlier this year; however, it is understood opposition to the scheme has weakened, while a potential judicial review against the remediation of Bixteth Gardens never materialised.

Pall Mall is being backed by Liverpool City Council given the city’s lack of office space within the city centre; the council has identified a “desperate need” for new space and has brought forward a strategic regeneration framework for the city’s commercial business district in an attempt to combat the shortfall.

Under Kier Property’s timeline, construction of the first phase and the public realm is expected to begin in spring 2020 and complete in winter 2021; the first occupation of the new office is anticipated the following spring.

Funding, however, remains to be secured. In June, Oliver Butler of Kier Property told Place North West Kier and CTP were “exploring a number of avenues” to get funders on board and added discussions had been “positive”.

Kier Property confirmed a deal had been agreed for the hotel but declined to comment on the operator. The professional team on the project includes architect Allies & Morrison, along with landscape architect Re-form. Colliers and Worthington Owen are the agents.

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And another one, Hotels are very popular at present, still more to come…

By Boom boom, book a room

We offices for companies to grow and move to the city – hotels can only filled when there is demand- we also need better transport links to the airport and a global outlook beyond the low cost European carriers

By Stuart wood

More good news and an important marker for Liverpool’s domestic office occupiers (from where most of the demand for these new offices is likely to originate) that the scheme is a goer.

On such signals will they make their move – and pre-lets should therefore be likely. Over to you, messrs Worthington and Owen…No pressure.

By Sceptical

When on Kiers timeline do they duck out of this one?

By Mikes mate

However we me bemoan the development of hotels in the Liverpool, we must remember that the visitor economy is now hugely important to the City and if this deal acts as an enabler to the development of new speculate offices, then it should be applauded. Great to see the public & private sector truly working hand in hand to a common aim.
Given the well documented supply & demand dynamics plus the deals these boys have already landed, I have every faith in Messers Worthington and Owen.

By Big John

You could lose another 10 large hotels in Liverpool and still wouldnt meet the demand. However, SW whilst correct, the office, transport links, and airport need longer term work to help the City grow.

By Billy

Certain people have spinning rubbish about “enablers” being needed for this or that in Liverpool for years. Remember the suggestion that once Joe’s brown stack at Lime Street was in the bag that the ABC would follow? City centre TV studios anyone? No, didn’t think so.

Speculative office development should be viable in Liverpool now, and if the investment is STILL lacking then it can only be individuals, rather than the city, responsible.

Will these offices ever come forward? Or is yet another hotel, around a sad and inappropriate pale immitation of New Brighton, the true sum of limited ambitions? How can we believe a word of what we’re told?

As for hotel demand, there will be no shortage of hotel applications in due course. Quite simply, property owners are wondering what to do with the commercial proprieties they appropriated when the demand for Liverpool overseas buy-to-never-see has now been holed (along with Liverpool city centre residential demand).

To fill those hotels into the future, however, requires a nurturing of the real visitor economy, and the economy behind it, not the stag and hen economy.

When the next recession hits Liverpool, it won’t be Brexit to blame for what unfolds.

By Mike

Liverpool’s trajectory is clearly up! For anyone who takes a long view this is crystal clear. The city has a fantastic atmosphere, it’s full if people from all over the world, as well as stags and hens, just like New York, Barcelona and Paris. Don’t get hung up on whether office development is speculative…. and why does PNW underline this? They don’t underline anything else?

By Roscoe

You’re clearly not seeing the Liverpool I am. Increase in homelessness, increase in addiction, increase in crime, overstretched healthcare, overstretched education system, some new hotels won’t fix that.

By Benjamin

@Benjamin, that’s the UK as whole, not a singularly Liverpool only issue.

By Midgy

@Benjamin that’s what happens under the Tories, that can change if people wise up.

By Anonymous

Benjamin, don’t worry we now have Ester McVey as Housing & CommunIites Minister, she will sort it she’s one of our own…..NOT.

By BDAY

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