Lifestyle hotel company Malmaison is to open its first new hotel since concluding a refinancing agreement last year. An agreement to lease has been concluded for a new 91 bedroom hotel in Dundee.
The new Dundee Malmaison is being created on the site of the old Tay Hotel, a listed city centre landmark building and will be Malmaison’s 13th hotel. Bounded by Whitehall Crescent to the north and west and Dock Street to the south and east, the redevelopment will start in spring 2012 with completion expected in May 2013, creating 120 new jobs
The new hotel is the latest high profile investment attracted to Dundee Waterfront, and joins a growing number of local businesses choosing to locate in the area.
The vacant Tay Hotel is being redeveloped by M.E.C. Services (International) Ltd. The developer will work closely with the Malmaison team to create an international standard lifestyle boutique hotel.
Malmaison is to take a 35-year FRI lease with an option to extend for a further 35 years. The lease is based on five-year RPI-linked rent reviews that are capped and collared.
The agreement to lease has been concluded by Gary Davis, who joined the
Malmaison and Hotel du Vin group as Chief Executive last week. He said:
“This is a fantastic project. The regeneration on the Dundee waterfront is already underway and we are delighted to have secured the lease on this property that will enable us to create a prestigious hotel on the site.
“My objective is to oversee an expansion of the Malmaison and Hotel du Vin business and expect that this new hotel will be the first of many for these fantastic brands,” added Davis.
Councillor Ken Guild, leader of Dundee City Council and chair of the Dundee Waterfront Board, said: "The new hotel will result in the restoration one of our finest historic buildings as a landmark destination, right at the heart of the regeneration of the city.”
The £1 billion transformation of Dundee’s Waterfront spans 240 hectares stretching 8km along the River Tay. It is the second-largest regeneration project in Scotland and is within the top twenty such projects throughout the UK. The waterfront will provide a home for the V&A’s new £45m museum in Dundee, which is due to open in 2015.
First Minister Alex Salmond said: “MWB’s decision to open a new Malmaison in Dundee reflects the significant opportunities for development and growth in the city. The city’s successful games sector and the creation of the V&A at Dundee strengthen its reputation as a centre for the creative industries. Dundee is increasingly attractive to new investment and visitors.”
Anne MacColl, chief executive of Scottish Development International, said: "That a globally recognised hotel chain has chosen to expand further in Scotland is testament to our increasing reputation as the ideal place to grow and do business.
