April 2013

Hotel deal for Liverpool Landmark

City council and Ashall deal paves way to £18m investment in Royal Insurance building

International hotel operator Starwood Hotels & Resorts to debut their Aloft brand at refurbished city landmark

LIVERPOOL’S derelict Royal Insurance building is entering a new era, with a major deal completed to bring it back into use, and a pioneering hotel operator signed-up.

The city council has completed the purchase of the freehold of the historic landmark for £1.95 million, facilitating £18 million of private investment in a project being undertaken by Runcorn-based developer Ashall Property Ltd. It will breathe new life into the building, at the corner of North John Street and Dale Street in the city centre.

And in a high profile first for the city, Starwood Hotels & Resorts Worldwide, Inc. have announced that they will be bringing their design-led Aloft brand to the building.

Launched in 2008, Aloft Hotels rank among TripAdvisor’s ‘Top 25 Trendiest Hotels in the US and around the world.’ Created to shake up the traditional mid-market hotel sector, they feature urban-influenced, modern design at an affordable price.

The 116-room, boutique-style Aloft Liverpool will feature the brand’s signature high ceilings, oversized windows, comfortable platform beds, walk-in showers and atmospheric public spaces. It will also offer a re:chargeSM fitness centre and re:fuelSM by Aloft, a 24-hour grab and go deli-style café in addition to five creative spaces for meetings and presentations.

The Grade II* listed Royal Insurance building has been unoccupied for 20 years, leading to it being placed on the National Buildings at Risk Register. Ashall Property Ltd aims to start building work on the gold-domed building in early May, completing work in late 2014. It is estimated that 150 construction jobs will be created during the build, with over 50 full time equivalent jobs created once the hotel opens.

Mayor of Liverpool Joe Anderson said: “The Royal Insurance building is an important landmark in the heart of our city, with outstanding architectural and historical value. It has lain derelict for too long and we are determined to bring it back into meaningful use.

“Our deal with Ashall and our success in signing-up Aloft gives us a fantastic opportunity to breathe new life into the building. It’s a great example of how we are working with the private sector to attract new investment, preserve our heritage and reduce the number of buildings at risk in our city, while boosting our hotel offer.”

The conversion scheme for the building has been designed by Liverpool architect Falconer Chester Hall (FCH). Balfour Beatty is the main contractor. English Heritage are supporting the scheme with a grant of £297,500 and the hotel will be managed by BDL Management.

Mark Ashall, Director at Ashall Property Ltd, said: “FCH has designed a scheme which complements and preserves the great heritage of this property and Ashall Property is both excited and proud to have the opportunity to regenerate an iconic building and provide Liverpool with a vibrant, design-led hotel complete with restaurant and meeting space.

“It has been a highly challenging project - in a difficult market - and the signing of contracts this month is the culmination of two years of dedication and commitment by all those involved. We would like to record our appreciation of their contribution and understanding of the constraints surrounding the renovation of a Grade II* listed building and their willingness to work around these to make this happen.

“We are indebted to Liverpool City Council for assisting with this project from the outset and to English Heritage for their continuing support. Similarly, this project couldn’t have progressed without Ingenious Media Investments Ltd or HSBC who have worked with us over a long period of time to bring the deal to fruition.”

Roeland Vos, President, Starwood Hotels & Resorts, Europe, Africa and Middle East, said: “Together with North John Street Op Co. and Ashall Property we are delighted to debut our first Starwood hotel in Liverpool”, said Roeland Vos, President, Starwood Hotels & Resorts, Europe, Africa & Middle East. “We see great opportunities to grow our Aloft portfolio in markets such as the UK where there is a strong demand for affordable yet stylish, cutting-edge hotel brands.”

The latest figures show that Liverpool’s work to bring historic buildings back into use is having a real impact. Only four per cent of the city’s buildings are now on the at risk register, compared to around seven per cent nationally.

The renovation of the Royal Insurance building contributes to one of the ambitions of the City Centre Strategic Investment Framework (SIF), a major 15 year plan developed by the city’s economic development company, Liverpool Vision working with Drivers Jonas Deloitte.

Dale Street was one of the original seven streets of Liverpool borne from the medieval origins of the city and the SIF aims to revitalise this historic heart of the city.

Jenny Douglas, head of Area Priorities at Liverpool Vision, said: “Liverpool’s Historic Downtown needs to adapt to the changing needs of the city and our ambition is to create opportunities for investment with a wide mix of uses.

“Historic Downtown contains a wealth of landmark buildings suitable for reinvention in a modern context and in the current economic climate, the plans for this building mark a big step forward in restoring the character and vibrancy of one of Liverpool’s great streets.”

Henry Owen-John, Planning and Conservation Director for the North-West at English Heritage, said: “English Heritage is delighted to support this project to bring the Grade II* Royal Insurance building back into use with a grant of £297,500. The planned conversion scheme will enable the regeneration of this great historic landmark so that it can once again play a prominent role in the life of the city.”

Dylan Jones, who led the deal for Ingenious Investments, said: “We are very proud to be involved with this important project and play a role in ensuring that under the expert guidance of Ashalls, Starwood and BDL, this remarkable building will finally be transformed into the grand and dramatic hotel that the location warrants.