Council to sell Holiday Inn site land for £1.8m

Leicester City Council said it intends to sell land under a landmark hotel for almost £2m.

The authority owns the site in St Nicholas' Circle where the 194-bedroom Holiday Inn was built in the 1970s.

The council has been charging the hotel about £12,000 in annual rent but has now said it plans to sell the ground lease interest to current hotel operator MCAP Global Finance (UK) LLP.

The move would see the existing 99-year lease, set to end in 2070, terminated early.

Council reports have shown the operator approached the authority to ask for the purchase so it could more easily secure finance and insurance on the building.

The council acknowledged the annual loss of rental income but said the sale would be part of a planned £60m sale of property it has deemed surplus to requirements.

City mayor Sir Peter Soulsby said: "The purchase of this freehold will bring benefits for the hotel operator, but the terms that have been agreed also represent a very good deal for the city.

"This capital receipt will make a welcome contribution to our general fund, helping to support the services that people in Leicester depend on."

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