Arcadian builds future with Malmaison brand

Arcadian International's expansion of the Malmaison hotel concept, its joint venture with Glasgow hotelier Ken McCulloch, will gather pace next month when construction of properties begins in Manchester and Newcastle.

Together with a 53-bedroom extension to the Glasgow Malmaison, which began in July, these developments represent an investment of some £28m.

Planning consent for building a further Malmaison in The Calls in Leeds is also expected in the near future. And financial backing for two more sites in London and Birmingham is expected in the next month.

The 120-bedroom Newcastle property, being built in a former warehouse on the banks of the Tyne, is expected to begin trading by November 1997, while the Manchester hotel, which will also have 120 bedrooms, is scheduled to open a month later.

During the six months to 4 July, Arcadian's hotels recorded a bedroom occupancy of 61.5%, up 4.5 percentage points on the same period last year. Achieved room rates were up 11% to £66.91.