The Ramada Hotel Group have taken a long lease on the 150,000-sq ft Fairbairn House, Deansgate, Manchester, with plans to convert the 15-storey office block into a 205-bedroom hotel. The conversion will cost £9m and be carried out with the building’s owners, Arndale Shopping Centres.
Fairbairn House has remained unoccupied since its construction in 1976. Arndale, who took over its management in 1983, would give no details of the Ramada lease, but said that the letting represented a saving of £200,000 pa in rates and maintenance costs.
Scheduled for completion in summer next year, the hotel will be Ramada’s third in the UK, with one already open in Reading and the Ramada Renaissance in Brighton opening next spring.
Last month Ramada cancelled an agreement with the International Leisure Group, made in May last year, for a £100m joint venture to build eight to 10 hotels over four years. However, this has not deterred Ramada’s ambitions.
Dan Mosczytz, Ramada senior vice-president, commented: “The UK remains a priority for the next phase of Ramada’s growth and its expansion plans call for 1,000 additional rooms by 1990.
“We believe that Manchester has tremendous potential as an international conference destination especially with the opening of the Greater Manchester Exhibition and Events Centre.”
Moss & Partners acted for Arndale Shopping Centres, and architects for the scheme are Michael Hyde & Associates.
