Birmingham is at the forefront of a boom in the leisure industry and is beginning to enjoy the economic benefits. Philip Smith reports
After much speculation and considerable waiting, hoteliers have started to flood into Birmingham.
Mailbox has confirmed that it is exchanging contracts with Malmaison to run a £20m, 180-bed, four-star hotel at its 139,350m2 (1.5m sq ft) canalside scheme.
The hotelier spurned the prime city-centre site at the former eye hospital owned by Richardson Developments and has signed for the redevelopment of the former Royal Mail office.
Demolition work on the scheme started in April and will eventually result in a new street and a public square as well as the final 200m stretch of the city’s south-west-facing waterfront.
Arcadian’s subsidiary will operate one of the two hotels in the Mailbox development and the other, a 90-bedroom budget operation, is likely to be run by Scottish & Newcastle.
No decision yet on operator
Chris Rouse, a partner at Knight Frank Hotels, letting agent for the units at Mailbox, would not, however, comment on any names.
Malmaison is not the only one to take the plunge. At the National Exhibition Centre, Holiday Inn International has signed up to run a 200-bed hotel.
Argent’s flagship mixed-use scheme Brindleyplace is also believed to be close to signing up a hotel backed by the Orr family. The developer has earmarked a site for a 200-bed operation behind Accor’s Novotel.
And in the city centre, Radisson is believed to have at last completed a deal to run a hotel out of Birmingham city council’s soon-to-be-vacated offices in Baskerville House.
Meanwhile, according to local agents, Mailbox is also close to securing restaurants and wine bars for up to 16 licensed and leisure units in the scheme. The developer, which has funding from the Royal Bank of Scotland, also recently extended its joint-venture deal with Crosby Homes that will see 200 rooftop and canalside apartments built.
Gerard Coyne, chairman of Birmingham city council’s urban & economic regeneration committee, says: “Birmingham is beginning to enjoy economic benefits from being at the forefront of the boom in the leisure industry.
“The NEC is one of the region’s major assets and its increasing popularity is demonstrated by the demand for a range of hotel accommodation on the centre’s doorstep.”
Rouse agrees, saying: “Schemes like the convention centre and the NEC and other regeneration projects have boosted the city and, in the past few years, hoteliers have looked to capitalise on that.
“Operators, who are offering stylish, value-for-money accommodation, are benefiting. Look at the Chamberlain in Broad Street.”
He adds: “Traditionally, Birmingham has been perceived as having a higher quality of hotel stock than Manchester, but one that underperforms in terms of occupancy and rates. That is changing and the city is being seen as the UK’s second city in this market as well.”
Strong demand for hotel space
Jim Roberts, associate director at Pheonix Beard, says: “Demand for further hotel space in Birmingham remains strong. With the backing of the city council, many existing multi-storey office buildings could well provide additional supply in the future.”
Elsewhere, many leisure operators are coming to the city for the first time. At Richardson Developments’ £40m Five Ways complex on Broad Street, Tiger Tiger is to occupy 2,229m2 (24,000 sq ft) of space. The first phase of Five Ways is anchored by a Virgin 12-screen, 2,400 seat multiplex.
Richardson’s Lee Richardson says: “The deal is an exciting ‘first’ for Birmingham.”
Tiger Tiger opened in London’s Haymarket at the end of last year and its concept of a daytime restaurant-bar that trades late into the evening has won a huge following.
Richardsons’ other leisure development on Broad Street, at the other end of the leisure pitch, is Hyatt Gardens – now known as Regency Wharf. The latest Richardson Cordwell development includes a quality restaurant known as The Pavilion and will provide 2,323m2 (25,000 sq ft) of restaurants and caf
