A new Malmaison boutique hotel has opened in York.
The extensive redevelopment of a seven-storey Sixties landmark office building has been completed by Lothbury Property Trust.
On Rougier Street, within the historic city walls and close to the railway station, it boasts 150 bedrooms and suites, with a new-build extension featuring the band’s Work+Play facilities, with meeting pods, co-working space, conference rooms and an events area.
Read more: 384-apartment development of former Hallmark HQ gears up to greet buyers
Previously known as Yorkshire House, it was occupied by Aviva as a headquarters for the insurance giant.
The hotel has a new rooftop Sky Bar, Sora - an Asian fusion tapas and cocktail bar,
Chez Mal Brasserie & Bar, a spa, gym and on-site Starbucks with an outdoor terrace.
Mark O’Mullane, director at Lothbury Investment Management Ltd, said designers took inspiration from the city’s industrial heritage and brutalist architecture, mixing concrete and moody elements with softer textures and confectionery touch points, drawing on York’s famous alumni including the Rowntree and Terry families.
“This is a major investment and long-term holding for Lothbury Property Trust, which will return a rental income of £2.1 million per annum, on a 35-year lease with indexation against RPI,” he said.
“Planning for hotels in York is generally challenging, so supply is constrained. This will support the investment value for the fund over the longer term. It also increases the fund’s exposure to the hotel sector, which fulfils a longstanding objective to acquire another hotel asset to complement our existing Edinburgh hotel.
“It also improves the average weighted unexpired lease term of the fund.”
Yorkshire Ventures acted as development manager.
Do you follow BusinessLive Humber on LinkedIn and Twitter? Click and engage to ensure you stay updated
