Cubex and Palmer Capital have signed a deal with Premier Inn for a new 168-bedroom hotel at the Finzels Reach development in Bristol.
The pair have submitted a planning application to Bristol City Council for the eight-storey hotel, which will be located on Counterslip, next to the completed 110,000 sq ft Bridgewater House office building occupied by Barclays and BDO.
On the back of the prelet deal, Cubex will market the hotel investment for sale at around £17m, reflecting a 5.25% yield.
The 4.7-acre mixed-use scheme was started by HDG Mansur in 2009, but receivers at Savills were appointed in April last year.
Palmer took on 100% of the non-performing loans in November, teaming up with local developer Cubex to deliver the 400 flats, 300,000 sq ft of offices and 90,000 sq ft of retail the scheme has planning permission for.
“[The hotel] is a fantastic addition to the scheme and symbolises the renewed momentum we have brought to this key Bristol development in the last 12 months,” said Cubex director Josh Roberts.
Author: Property Week