Business

McAleer & Rushe secures £40m Birmingham hotel project

Tyrone construction firm McAleer & Rushe has secured a new deal to build the £40m Maldron Hotel in Birmingham. Pictured is the completed Maldron Hotel in Belfast city centre
Tyrone construction firm McAleer & Rushe has secured a new deal to build the £40m Maldron Hotel in Birmingham. Pictured is the completed Maldron Hotel in Belfast city centre Tyrone construction firm McAleer & Rushe has secured a new deal to build the £40m Maldron Hotel in Birmingham. Pictured is the completed Maldron Hotel in Belfast city centre

CO Tyrone construction giant McAleer & Rushe has agreed a deal to build a new £40 million hotel in Birmingham.

Continuing its strong working relationship with Ireland’s largest hotel chain, the Dalata Group, the Tyrone company has signed an agreement for lease to deliver the four-star, 330-bed Maldron Hotel in Birmingham city centre.

The scheme is another significant project in the long-standing partnership between the two companies, which has seen McAleer & Rushe deliver numerous hotels across the UK and Ireland for the leading operator. These include the 237-bed Maldron Hotel in Belfast, which opened in March.

The £40m Birmingham hotel, which is subject to planning approval, is scheduled to be delivered by the start of 2021 and is expected to create 100 full time and part time jobs, once completed.

 McAleer & Rushe is expected to submit a planning application to Birmingham City  later this year and Dalata Group will enter into a 35 year lease on completion of the hotel, subject to five year reviews and linked to Retail Price Index.

Elsewhere in the city, McAleer & Rushe, is on site in Lancaster Circus in where it is constructing a 1000+ bed student accommodation scheme.

McAleer & Rushe property director, Stephen Surphlis said the new Maldron Hotel is a "significant project", which will add to regeneration within the city.

"With a large economy and major projects in close proximity including the new HMRC Regional Hub, HSBC’s Headquarters and the pending HS2 high speed rail network linking to London we are confident that our investment in the city will make an important contribution to the economy and provide a modern hotel offering for business users as well as leisure visitors.”

“Having delivered a range of projects for the Dalata Group across the UK and Ireland we are looking forward to partnering with them, once again, to deliver this exciting new hotel scheme," he added.

The new Birmingham project will be the Dalata Group’s second hotel in Birmingham following its acquisition of the Hotel La Tour in 2017, which now operates under the Clayton brand.

Dalata Hotel Group, deputy CEO for business development and finance, Dermot Crowley said they are excited by the "excellent opportunity".

"Birmingham is a very attractive hotel location and ensures that we continue to grow our development pipeline in the UK as per our growth strategy. We will work closely with McAleer & Rushe through the development phase and look forward to introducing the Maldron brand to Birmingham.”