Manchester Airport to create £180m "hotel district"

24 April 2018 by
Manchester Airport to create £180m "hotel district"

A Holiday Inn and Ibis Budget are to be the starting point of a £180m "hotel district" at the Airport City Manchester development.

The hotels will be located adjacent to Terminal 2 at Manchester Airport, and will form part of the £1b Airport City Manchester development. The 280-bedroom Holiday Inn Manchester Airport will feature three meeting rooms, a seventh-floor canopied terrace and crew lounge, and a ground-floor restaurant, while the Ibis Budget Manchester Airport will offer 262 rooms over seven levels.

A full planning application has been submitted with construction targeted to start in early 2019 and completion scheduled for Q1 2021.

Airport City Manchester also received planning consent in February for a 375-bedroom, four-star hotel and a 254-bedroom, three-star hotel, adjacent to Manchester Airport's transport interchange.

As a result, the development is planned to include four new hotels by 2021, creating a £180m "hotel district" with 1,171 new hotel rooms to support the airport's growth. Passenger numbers are set to grow from 26 million in 2017 to 35 million by 2027.

Airport City Manchester's joint venture partner P1 Hotels, a consortium of hospitality specialists, will act as the developer of the initial £80m Holiday Inn and Ibis Budget hotel project.

Lynda Shillaw, chief executive of MAG Property, said: "Increasing the number of hotels at the airport is underpinned by the significant growth that we have seen in both passenger numbers and airlines over the last five years."

Councillor Susan Quinn, chair of Property Working Group at Greater Manchester Pension Fund, said: "This is a unique site within Airport City Manchester and we have seen strong demand from international investors looking to capitalise on the recent growth and opportunities at Manchester Airport."

Dongwen Yu, lead director at Beijing Construction Engineering Group International, added: "Hotels are a key component on Airport City and the development and construction of this new district will provide valuable employment opportunities for the local area while supporting the continued expansion of Manchester Airport."

The purchaser was represented by CMS Cameron McKenna Nabarro Olswang (London); Airport City by Eversheds Sutherland; and MAG by CMS Cameron McKenna Nabarro Olswang (Manchester). JLL and CBRE are retained lettings and sales agents for Airport City.

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