The 110K SF Jenga-inspired hotel planned as the first phase of the 8.7M SF Portugal Street East development in central Manchester has secured funding, and will go ahead despite the coronavirus crisis.

Manchester-based developer Capital & Centric has completed a funding agreement with the Greater Manchester Pension Fund to finance the construction of its 275-bedroom hotel, while also confirming Bowmer & Kirkland as the main contractor.

Work on the £35.5M project is expected to start in the summer, subject to coronavirus restrictions being lifted, with completion pencilled in for early 2022.

The 110K SF hotel, located on the corner of Adair Street and Great Ancoats Street, will span 14 floors and has been acquired and occupied by the Fattal Group who will will operate it under the Leonardo Hotel brand.

The hotel is designed by Stephenson Studio to resemble the popular pile-of-bricks Jenga children's game.

“In these difficult times it’s even more important to be pushing ahead with our Adair Street hotel," Capital & Centric co-founder Tim Heatley said. "It’s going to be a striking new addition to Manchester’s skyline and an anchor development in the Piccadilly East neighbourhood.”

The hotel will be the first project to come forward in Manchester City Council’s Portugal Street East Strategic Regeneration area, which is expected to deliver 8.7M SF of commercial floorspace and 13,000 new apartments. Developers involved are Capital & Centric, Forshaw Land & Property, Olympian Homes and AECOM.