Funding Deal Agreed For £63M Hotel

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Sovereign Square Marrico Project

Funding Deal Agreed For £63M Hotel

A funding deal has been agreed to bring forward a £62.7m hotel on a prominent site adjacent to the railway station in Leeds city centre.

Marrico Asset Management and Helios Real Estate have signed a forward funding deal with UK Commercial Property REIT Ltd to build a 305-bed hotel to be operated by Interstate Group under the Hyatt brand.

The £62.7m hotel will be developed by the partnership on their Sovereign Square site in the city centre adjacent to the railway station.

Construction will begin immediately with our appointed contractor GMI Construction.

The 12-storey hotel is scheduled to complete in 2024, with a 25-year franchise agreement in place with Hyatt Hotels.

The 305 rooms will be split between the short stay Hyatt Place and the long stay Hyatt House brands. The premium hotel will provide meeting rooms, a gym and several food and beverage options, including a rooftop bar.

Richard Bland, of Marrico, said: “The acquisition is in line with UKCM’s strategy to take exposure to operational real estate sectors that are expected to deliver resilient rental incomes. The hotel will be operated under a lease by Interstate Hotels, a leading international hotel operator, with UKCM’s rental income based on the income generated from the operation of the hotel.”

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