Funding deal struck for £63m Leeds hotel

•  UK Commercial Property REIT is to fund a 305-bed hotel in Leeds

•  Hotel already pre-let to Interstate Group under the Hyatt brand

•  Construction work to start imminently

UK Commercial Property REIT has agreed to fund a £63m hotel in the centre of Leeds.

The hotel, to be developed by Marrico Asset Management and Helios Real Estate, is to be built at Sovereign Square next to the city’s railway station, and will include 305 rooms.

Interstate Group has already signed up to operate the hotel under the Hyatt brand, the first of its type in the city. The hotel is due to complete in 2024 with GMI Construction appointed as main contractor, and Hyatt Hotels has signed a 25-year franchise agreement.

React News first revealed a funding search for the hotel had begun in May 2020, and planning permission was secured last year. BNP Paribas acted for Marrico and Helios on the deal.

It is the second successful funding deal for Marrico and Helios in recent month after React News revealed that Cortland had signed up to fund a core part of the developers’ £300m Lisbon Square project, also in the city centre.

Trevor Cartner of Helios said: “This is the last available site at Sovereign Square and we have commissioned a suitably impressive building to complete the development. The hotel will be a fantastic addition to the Leeds market which we believe will continue to grow. Our investment will sit alongside UKCM’s for the medium term so the hotels success will determine ours.”

Copy by Charlie Schouten – React News.