Leicester Holiday Inn site sold to London investor for £1.8m

MCAP Global Finance has acquired the freehold on one of the East Midlands’ best-known city centre hotels after agreeing a £1.8m deal with Leicester City Council.

The company, which operates the 194-bedroom Holiday Inn on St Nicholas Circle, has purchased the site after approaching the council with plans to invest in upgrading and enhancing the hotel.

The authority granted a 99-year lease on the 38,000 sq ft site shortly after the hotel was built in 1972. MCAP had been leasing the land from the council for around £12,000 a year, but will now take ownership of the freehold after agreeing the purchase, alongside a £20,000 contribution towards the council’s professional fees.

City Mayor 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.”