A joint venture between Property Alliance Group and Starwood Capital Group has acquired the Renaissance Hotel in Manchester and plans to redevelop it into a €227.6 million mixed-use project comprising a new hotel, offices, parking and residential units.
The site is located on Deansgate and is next to Selfridges and Manchester Cathedral. It currently houses a 206-bed hotel, offices, and a parking. Redevelopment plans are expected to be released by March.
The Renaissance Hotel, part of the Marriott Group, closed permanently in July 2020. The owners cited declining demand due to travel restrictions as the reason for the closure.
Timothy Abram, vice president of Starwood Capital, said :
We have made several major investments in Manchester over the past decade and, building on these successes, we are delighted to have another opportunity to invest in the city. The redevelopment of this prime site has the potential to generate many economic benefits for Manchester and we hope that this will be the first of many investments made as part of our new joint venture with Alliance.
Alex Russell, Managing Director of PAG, added :
Starwood Capital is a partner who shares our vision and commitment to achieving this development. Our complementary skills and combined real estate experience, including Starwood Capital's unique track record in hospitality, mean that we are well placed to deliver a flagship project that will regenerate a vital part of Manchester.
US private equity firm Starwood Capital Group is known in the UK for its leading brand of city center hotels, which it sold in May 2018 for £858 million to French investor Covivio. The group, overseen by its Chairman and CEO Barry Sternlicht, joined forces with Cairn Group to transform the former St Georges Hotel near Oxford Circus in 2019 into the first Treehouse branded hotel, which it hoped to develop at that time. His company SH Hotels and Resorts owns the Tree House, 1 Hotels and Baccarat brands.
In addition to bringing its 1 Hotels brand to Mayfair in 2022, following the renovation of the Holiday Inn London Mayfair, owned by Crosstree Real Estate Partners, the group also previously confirmed its intention to bring its Baccarat brand to the United Kingdom.