Colliers International has been instructed to sell the Nitenite hotel in Birmingham on behalf of administrator Zolfo Cooper.
The agent is approaching investors over the purchase of the 120-year leasehold interest in the property.
The 104-bedroom hotel on Holliday Street, close to the Mailbox in the city centre, was opened in March 2006 by architect Neil Tibbatts.
Although a guide price has not been set, sources predict the property will be sold for in excess of £3.5m. As well as the building itself, the buyer would also be purchasing the rights to the Nitenite brand, which was inspired by prefab, no-frills Japanese hotels.
The company was originally backed by Bank of Scotland and Capital Invest, an Irish private equity company, which announced it would invest £120m into rolling out the no-frills concept.
Colliers director Jonathan Wren said: “The Nitenite Hotel is one of central Birmingham’s most distinctive and popular hotels and, although now in administration, continues to trade successfully and with commendably healthy levels of profit. Having, as it does, unused space within the building to add additional bedrooms, and the opportunity for the brand to be rolled out to other cities and locations, the sale of Nitenite really is a unique opportunity for potential buyers.”
lisa.pilkington@estatesgazette.com
