New Modular Design Hotel Supports Bristol Airport’s Growth Plans
As part of Bristol Airport’s plans to develop facilities to handle ten million passengers per annum, Colliers International has secured a long term, turnover based, ground lease for a new on-site 200 room hotel.
As part of Bristol Airport’s plans to develop facilities to handle ten million passengers per annum, global property advisors Colliers International has secured a long term, turnover based, ground lease for a new on-site 200 room hotel - to be developed with £15 million of investment from CIMC Modular Building Systems of China.
CIMC Modular Building Systems, a Chinese company that specialises in building modular guest rooms and hallways in manufacturing plant conditions, has been actively pursuing expansion opportunities in the UK market and is already in negotiations with a shortlist of operators for the hotel.
Marc Finney, Head of Hotels and Resorts Consulting, Colliers International commented: “This project has been two years in the making; we have been working closely with the commercial team at Bristol Airport to develop the concept for a new on-site hotel to be delivered by the investor, CIMC Modular Building Systems. The agreement is based on a long term ground lease, so the speed at which the hotel can be erected will be key to Bristol Airport’s development objectives as well as making this project commercially viable for the operator, which is soon to be announced.”
This deal comes at a time when Asian investors are moving up the risk curve in the UK, due to the higher returns offered by hotels; the share of hotels in Asian investment has increased from eight per cent in 2012, to 13 per cent in the first half of 2014 and now makes up 25 per cent of all hotel investments.
Paul Blackmore, Managing Director of CIMC Modular Building Systems said: "Bristol Airport is the UK’s fifth largest airport outside London, as it enters the next phase of its plan to expand the airport’s offering, it presents a huge opportunity for an on-site hotel. Our modular system is new to the UK and Bristol Airport provides an opportunity to showcase this new type of design.”
Simon Wells, Director in Colliers’ Bristol office adds: “Development in and around Bristol for hotels is on the move again. Site specific new hotels such as the one for the new arena development, along with the airport, are dominating the pipeline, though there is clearly scope for a top end product in the city. It takes a great deal of market expertise to deliver this kind of turnover-based lease agreement - Marc’s perseverance over the last two years, alongside his extensive contact base and niche experience, have been instrumental in securing the right investment partner to bring this significant project to fruition.”