Dundee’s £1 billion waterfront redevelopment has received a further major boost with confirmation that Sleeperz Hotels will move into the city’s new station.
The company’s interest in the location was exclusively revealed in The Courier last month and negotiations are now reaching a conclusion.
The city council will own and lease the building to Sleeperz, which will pay higher rent charges. Councillors will next week be asked to approve borrowing of up to£4.6 million to fit out the building.
Confirmation that Sleeperz will beoperating the new hotel in the £22m redeveloped station comes days after the Heritage Lottery Fund announced a £9.4m grant for the V&A Museum.
Mike Galloway, the council’s director of city development, said: “We are delighted to have attracted Sleeperz to our waterfront redevelopment in Dundee.
“This new hotel will provide further high-quality accommodation for the many hundreds of thousands of additional visitors to the V&A Museum and it will create a powerful new landmark entrance into our city.”
The budget operator will make the120-bedroom property above the newstation concourse its fourth UK hotel.
Sleeperz Hotel Dundee will be built in a stylish curved design, with panoramic views over the River Tay and on to the new waterfront plaza.
David Myers, chief executive, said: “Sleeperz Hotels is an innovative,fast-growing company with ambitious plans to expand our portfolio of UKlifestyle hotels and is delighted to secure such an exciting development.
“Dundee needs to increase its bed stock, and visitors to the city will benefit from our distinctive brand of stylish, contemporary rooms and ultra-convenient location at affordable prices.’’
Sleeperz has been seeking to revive theclassic British railway hotel. Thecompany specialises in stylish and affordable lifestyle hotels, often on awkwardly shaped land in city centres.
Sleeperz inCardiff andNewcastle werefollowed by sister brand Cityroomz in Edinburgh last May and they have won architectural awards and recognition from hotel booking and travel websites.
The Dundee hotel will create up to 30 jobs and generate opportunities for thehospitality industry.
Council leader Ken Guild said: “As detailed negotiations with a preferred hotel operator progressed, it became clear that the best commercial option for the council would be for us to fully fit out the building to their requirements.
“The cost of this is estimated at between £3.9m and £4.6m, which will be covered by higher rental income paid to the council by the hotel chain.
“I am confident that this is by far the best way to bring this project to a successful conclusion.”