Malmaison York: New owner buys landmark hotel for undisclosed sum weeks after £31m valuation revealed

A landmark Yorkshire hotel has been purchased by a London-based real estate investor for an undisclosed sum – weeks after the property was valued at more than £30m.

The property used by Malmaison York, based in the former Yorkshire House building once used by insurance giant Aviva as offices, has been sold to Firethorn Trust.

The 29,000 sq ft site with 150 bedrooms is occupied by Malmaison under a 35-year lease, with a current rental income of £2.1m per annum.

Hide Ad
Hide Ad

The hotel has only been open since 2021 following major redevelopment work overseen by Lothbury Property Trust.

The building housing Malmaison York is under new ownership.The building housing Malmaison York is under new ownership.
The building housing Malmaison York is under new ownership.

The sale price has not been disclosed but last month Lothbury listed Malmaison as one of its top ten assets, valued at £31m based on figures from March 31 this year.

Marcus Weeks, Director and Head of Living at Firethorn Trust, said: “Malmaison York is a high-quality asset that will perform well and create long-term value for us, whilst strengthening Firethorn’s presence in the living space.

“It’s a fantastic addition to our investment portfolio and complements our wider development strategy to deliver high-quality spaces in great locations that enable people and places to thrive.

Hide Ad
Hide Ad

“We have an appetite and ability to pursue opportunistic transactions, and look forward to continuing our growth within the living sector.”

A spokesperson added that the hotel is one of the top-performing sites within the Malmaison chain.

They said: “Situated on Rougier Street, within the historic walls of the city, Malmaison York is in walking distance of popular tourist destinations including York Minster, York Castle and the National Railway Museum.

“Providing luxury accommodation across 150 contemporary guest rooms, the hotel underwent an extensive redevelopment in 2021, which included the addition of a rooftop skybar with panoramic views across the city.

Hide Ad
Hide Ad

"It features Malmaison’s signature ‘Work + Play’ facilities, with meeting pods, co-working areas, conference rooms and an events space that caters for up to 180 guests, in addition to an on-site spa and gym.

"The hotel has since become one of the best performing sites within the wider Malmaison and Hotel Du Vin chain.”

New owner Firethorn, which was established in 2018, was advised on the deal by Conway Real Estate, JLL and Maples Teesdale

It is the latest addition to Firethorn’s rapidly growing ‘Living’ portfolio, following recent acquisitions of One Bessborough Gardens in Central London, which it will convert into a collection of around 60 modern apartments, and a purpose-built student accommodation site at Leith Walk, Edinburgh.

Hide Ad
Hide Ad

Yorkshire House on Rougier Street was built in 1962 and refurbished in 2000 before being sold by Aviva.

Planning permission was granted in 2017 for the building to be turned into a hotel.

Malmaison operates 16 hotels across the United Kingdom, including one in Leeds.

Lothbury was contacted for comment.

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.

News you can trust since 1754
Follow us
©National World Publishing Ltd. All rights reserved.Cookie SettingsTerms and ConditionsPrivacy notice