Quintain has teamed up with Hilton International to develop a 400-bedroom hotel at Wembley.
The developer has signed a conditional long-term management agreement with Hilton, who will operate and manage the hotel via its wholly owned subsidiary, Maple Hotels Management.
The total transaction value is £103m, comprising £91.5m of development costs and £11.5m for the acquisition of Wembley Plaza, an existing 306-bedroom Hilton hotel close to the site of the new project.
This hotel will continue to be operated under a short-term management agreement by another Hilton subsidiary; Comfort Hotels, until the new hotel has been completed in 2010. Quintain hopes to finance the development using existing bank facilities. It also forecasts the Wembley Plaza hotel will generate around £1.2m of profit during the first full year of operation to 31st December 2007.
Nick Shattock, Quintain’s deputy chief executive, said: ‘The signing of a long term agreement with Hilton for the new hotel and our simultaneous acquisition of their existing Wembley Plaza property marks another significant step forward for our regeneration of Wembley.’