Malmaison to lease new Dundee hotel (UK)

Malmaison, the lifestyle hotel company owned by MWB, announces that it 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.

An agreement to lease has been concluded for a new 91-bedroom hotel in Dundee, Scotland's fourth largest city. The new Dundee Malmaison is being created on the site of the old Tay Hotel, a listed city center landmark building, and forms part of the substantial £1 billion Dundee Central Waterfront Development that forms an integral phase in the city's multibillion regeneration of its historic waterfront which includes a new £45 million V&A museum.

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. The site is both close to the city center, the Firth of Tay waterfront, the new V&A museum and the mainline station.

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. On completion it will create 120 new jobs and become Malmaison's 13th 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 only joined the Malmaison and Hotel du Vin group as Chief Executive last week. He is already having an immediate impact as he seeks to take the award-winning and highly rated boutique hotels business to the next stage in its development.

"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: "We are delighted to welcome Malmaison to Dundee as a key part of the new Waterfront, particularly as 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 of land stretching 8 km 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 £45 million museum in Dundee which will be an international center for design and 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 center for the creative industries and its ability to attract new investment and visitors.

"The announcement demonstrates confidence in the local economy and will bring new jobs to the city. Malmaison has chosen an excellent location in the Dundee Central Waterfront development and I wish them every success as they take forward plans for this impressive four star hotel."

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.

"As a city, Dundee is very much leading the way. From world-class life sciences and gaming industries to the redevelopment of its waterfront and the hugely anticipated creation of the V&A, Dundee is driving forward as an internationally renowned city of excellence.

"Scottish Developm

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