LaSalle Investment Management has agreed to fund a new prelet Motel One hotel on London Road in Manchester for £25.5m.
The hotel will comprise 330 rooms over 13 floors with Motel One agreeing a 25-year lease.
The property will be developed by Livia Limited, which is managed by Olympian Homes Limited.
Work has started on site with a completion date expected for April 2015.
The acquisition takes LIM’s recent UK hotel investments to around £250m – £150m of which is through development fundings.
Motel One is an established German brand currently expanding into the UK market, focusing on London and other major cities throughout the country.
John Yeend, director at LIM, said: “This latest transaction expands our UK hotel ownership and secures a substantial new hotel for our portfolio let on a long index-linked lease and set in the heart of Manchester.
“We believe that Motel One will continue to grow in the UK and will become an established brand, as they are on the Continent.
“LaSalle Investment Management continues to be active in alternative property sectors, including hotels and student housing. We are able to undertake complex development fundings alongside standing investment acquisitions and sale-and-leaseback transactions.”
LIM was advised by Jones Lang LaSalle.
annabel.dixon@estatesgazette.com
