Tristan Capital Partners has bought the 261-bedroom building on the corner of Deansgate and John Dalton Street and plans to rebrand it as a Yotel.
Qbic’s Manchester hotel opened in May after a three-year project to convert the former John Dalton House office building completed.
The hotel was Qbic’s largest to date, having opened sites in Amsterdam, Brussels and London since launching in 2009.
Now, Tristan Capital Partners’ EPISO 5 Fund has acquired the property for an undisclosed sum.
The purchase is the first in a wider strategy that involves investing €500m on hotels over the next 12 months.
The fund was advised on the transaction by Greenberg Traurig, PwC, Workman and HVS.
Kristian Smyth, executive director of investments at Tristan Capital Partners said: “This acquisition represents the first step in our wider hotel strategy and we are very excited to have started with a hotel of this quality.
“Our objective is to invest in excess of €500 million over the next 12 months and we are currently in discussions regarding a number of transactions in this space.”
Following the rebrand, the asset is to be operated by Hamilton Hotel Partners. The Yotel will be the fifth under that brand in the UK; there are two in Scotland and two in London.
The history of the site
Leonardo Hotels was initially lined up to operate a 215-bedroom hotel at the site and a planning application to part-demolish and part-convert John Dalton House was approved in 2016.
However, Leonardo backed out of the project, allowing Qbic to step in and buy the building from former landlord Royal London.
A revised application for a 261-bedroom hotel that would see John Dalton House retained was then submitted in 2018, with 5plus Architects leading on design.
Following approval of Qbic’s plans, contractor Bardsley was appointed to build the hotel but stepped away in 2019 after the construction firm and developer failed to agree a “mutually acceptable way forward”.
MY Construction then took over as main contractor, completing the project earlier this year.