Modular hotel scoops Bristol airport deal

20 November 2014 by
Modular hotel scoops Bristol airport deal

Contracts have been exchanged on a development deal for a 200-bedroom hotel at Bristol airport, following nearly two years of negotiations.

CIMC Modular Building Systems of China will invest £15m in developing the hotel, which is scheduled to open in 2016.

The Chinese company, which has been pursuing expansion opportunities in the UK, specialises in building modular guest rooms and hallways in manufacturing plant conditions. It is already in negotiations with a shortlist of hotel operators, with Hampton by Hilton rumoured to be a front-runner.

Property agent Colliers International has secured a long-term, turnover-based, ground lease for the new on-site property, which is part of the airport's plans to handle 10 million passengers a year.

The agent's Marc Finney, head of hotels and resorts consulting, said: "The agreement is based on a long-term ground lease, so the speed at which the hotel can be erected will be key to Bristol airport's development objectives, as well as making this project commercial viable for the operator, which is soon to be announced."

The deal comes at a time when Asian investors are moving up the risk curve in the UK, due to the higher returns offered by hotels. The share of hotels in Asian investment has increased from 8% in 2012, to 13% in the first half of 2014 and now makes up 25% of all hotel investments.

CIMC managing director Paul Blackmore said: "Bristol airport is the UK's fifth largest airport outside London. As it enters the next phase of its plan to expand the airport's offering, it presents a huge opportunity for an on-site hotel. Our modular system is new to the UK."

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