UK: A controlled affiliate of Starwood Capital, through a joint venture with Property Alliance Group (PAG), has acquired the Renaissance Manchester site from Urban & Civic with plans for a mixed-use scheme including a new hotel, offices and homes.
The site is located on Deansgate and is next to Harvey Nichols, Selfridges and Manchester Cathedral. It currently houses a 206-bed hotel, office space and a car park.
The four-star Renaissance hotel, which is part of the Marriott group, permanently closed in July 2020. The property’s owners cited weakened demand from the travel restrictions as reasons for closing.
Plans for the redevelopment are expected to be disclosed before March.
Timothy Abram, vice president at Starwood Capital, said: “We have made several major investments in Manchester over the past decade and, following on from these successes, we are excited to have another opportunity to invest in the city. The redevelopment of this prime site has the potential to generate many economic benefits for Manchester and we hope this will be the first of many investments made through our new joint venture with Alliance.”
Alex Russell, managing director of PAG, added: “Starwood Capital is a likeminded partner that shares our vision and commitment to deliver this development. Our complementary skill sets and combined real estate experience, including Starwood Capital’s unique hospitality track record, means we are well positioned to deliver a landmark scheme that will regenerate a key part of Manchester. We will now be working closely with Manchester City Council to develop our plans with the aim of presenting these over the coming months.”
He added: “We are committed to helping make Manchester a zero-carbon city by 2038 and that will mean more environmentally-friendly construction practices across all our schemes, including the redevelopment of this site. We are developing a sustainable design and the majority of the existing building will be reused or repurposed.”
CBRE acted for Starwood Capital and PAG on the acquisition. JLL and Savill advised Urban & Civic on the sale.
Barry Sternlicht, CEO of Starwood Capital, is named as one of IHM’s 50 Urban Innovators. His company SH Hotels and Resorts own the Tree House, 1 Hotels and Baccarat brands. You can find out who else made IHM’s list here.