The MWB-owned Malmaison hotel brand is to open its first new hotel since concluding a refinancing agreement last year and the appointment of Gary Davis as the hotel group’s new Chief Executive.
The agreement is for a 35-year lease on a new 91-bedroom hotel in Dundee, Scotland’s fourth largest city.
The new Dundee Malmaison is being developed on the site of the old Tay Hotel, a listed city centre landmark building, and forms part of the £1bn Dundee Central Waterfront Development. Malmaison will not own the new Dundee hotel outright, but will take a 35-year lease with rent reviews every five years and options to extend for a further 35 years.
The redevelopment will start in spring 2012 with completion expected in May 2013. On completion it will create 120 new jobs and become Malmaison’s 13th hotel.
“The regeneration on the Dundee waterfront is 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," said Davis who noted his objective was to oversee an expansion of the Malmaison and Hotel du Vin business.
Scotland’s 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 and its ability to attract new investment and visitors.”
According to the Dundee City Council Property schedules, "The Tay Hotel is a large Listed Building strategically located within Dundee City Centre. The property was originally built as a hotel and was in such use until the 1990’s, when it was used briefly as a hostel. The building has lain vacant for a number of years, but offers an excellent opportunity for redevelopment, directly adjacent to the City’s Waterfront Masterplan area. The redevelopment of this site will be based on the reuse of the existing Category B Listed Building which forms an important landmark within the Central Conservation Area."