Mothballed hotel scheme put on the market for £6m

A partly-completed hotel scheme which has been languishing in building limbo for over two years has been put on the market by administrators.
Leeds Arena Hilton artists impressionLeeds Arena Hilton artists impression
Leeds Arena Hilton artists impression

Property agent Lambert Smith Hampton has been appointed by Duff & Phelps to sell the freehold interest in the part-complete Hilton hotel scheme near Leeds Arena for offers in excess of £6m.

The building site has remained an eyesore since the original contractor, Oxford GB Two Limited, went into administration in March 2015.

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The 206-bedroom hotel, which was destined to be 14-storeys, is currently part complete to nine storeys.

Despite a 13 per cent increase in average daily room rates in Leeds since 2013 and strong occupancy, the city has only seen three significant new hotel openings since 2013.

But buoyed by an increasingly robust market performance, hotel development activity is returning in the city with two new developments recently announced: Singaporean Heeton Holdings’ Hampton by Hilton development on Bridge Street, and Idé Real Estate’s conversion of Leeds City Council’s Great George Street building. The combined developments will add 332 new hotel rooms in the city.

LSH said that, given the strength of the location, the mothballed scheme at Portland Crescent also has the potential to attract interest for alternate uses such as student accommodation or the private rented sector - subject to planning permission.

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Hugh Anderson, director of hotels at Lambert Smith Hampton, said: “Over the past few years, strong occupancy levels in the city have resulted in a number of new developments coming to fruition to meet the demand.

“Growth in the sector is on the up, both locally and regionally, and this site will give investors the chance to own one of the best, strategically located development opportunities in the city, with potential for strong returns on completion.

“Due to the location of the site, which is a short walk from cultural and transport hubs and Leeds Beckett University, we expect the asset will be in high demand and as such, we anticipate a high volume of interested parties.”