Duff & Phelps appointed commercial property consultancy Lambert Smith Hampton to sell the freehold interest in the Portland Crescent hotel, which is almost complete. According to Hotel Designs, the city center development property near Leeds Arena has received a planning permit and is on the market for offers of more than $7.65 million.
Once completed, the 206-room hotel will consist of 14 stories. The site is near many of Leeds' bars and late-night venues, including O2 Academy Leeds, Carriageworks Theatre and Grand Theatre and Opera House. The plan also has the potential to attract interest for alternate uses, such as student housing or the private rented sector, which are subject to planning permission because of the site's location.
“Due to the location of the site, which is a short walk from cultural and transport hubs and Leeds Beckett University, we expect the asset will be in high demand and as such, we anticipate a high volume of interested parties,” Hugh Anderson, director of hotels at LSH, told Hotel Designs, said in a statement
Leeds has only had three significant new hotel openings since 2013. However, the city had a 13-percent rise in ADR since that year and strong occupancy. Hotel development activity has been returning now that market performance has begun to increase. Two hotel development projects were just announced by Singapore's Heeton Holdings and Idé Real Estate. This rise in development will add 322 new guestrooms to the city's inventory.
“Over the past few years, strong occupancy levels in the city have resulted in a number of new developments coming to fruition to meet the demand," Anderson said in a statement. "Growth in the sector is on the up, both locally and regionally, and this site will give investors the chance to own one of the best, strategically located development opportunities in the city, with potential for strong returns on completion."