Developer and asset manager Dominvs Group has completed the sale of the Holiday Inn Manchester City Centre on Aytoun Street to a controlled affiliate of Starwood Capital Group.
The price is rumoured to have been around £58m. Dominvs said the deal represents one of the largest hotel transactions completed this year, claiming it to be the largest single asset hotel sale on record in Manchester.
The hotel will continue to be branded as a Holiday Inn and will now be managed by Kew Green Hotels on behalf of Starwood, the group behind the acquisition of the Palace Hotel and its reopening as the Principal Manchester after carrying out a £21m redevelopment. Starwood also bought the Royal Exchange in 2014 before selling last year.
Jon Asumendi, vice-president at Starwood, described the hotel as “one of the finest Holiday Inns in Europe, with an impeccable reputation in its market”.
The site, formerly home to the Labour Exchange and once intended for Albany Assets’ ambitious Crown Tower project, was acquired by Dominvs in 2013. Working with contractor McAleer & Rushe, Dominvs secured planning and built out the Dexter Moran-designed 298-bedroom property ahead of opening in April 2016.
Preet Ahluwalia, director at Dominvs, said: “We are very proud of our Manchester project and being able to deliver a fantastic property in an area which is going through a significant regeneration. In what is a competitive market, our management team have overseen a fantastic first year’s trading, with the hotel delivering above expectations.”
The group works regularly with hotel operator IHG on the development of Crowne Plaza and Holiday Inn hotels.
JLL advised Dominvs Group on the deal.