The Princess of Portland, a hotel in the heart of Manchester's thriving city centre, has been sold to Harcourt Developments, a Dublin-based property and investment company, for over £8 million.



Harcourt Developments praised the Princess of Portland's "beautiful building" and pledged to invest a huge £3 million into the hotel, turning the 85-room establishment from a three star property to a trendy boutique hotel. Harcourt have also said that the Folio Hotel Group, which also operates the Etop Grange Hotel, near Manchester Airport, will operate their new acquisition. As Pat Power, managing director of Harcourt Developments, explains: "This is a beautiful building in the heart of the city and we are planning a multi-million pound refurbishment of the entire property, creating a luxury boutique hotel which will be operated by the Folio Hotel Group."



The Princess on Portland was originally a Victorian cotton warehouse and was converted into a hotel in the 1980s. The hotel was initially owned by Carlton Hotels and was bought by current owners James and Catherine Alexander and their business partner Tim Rumney in November 2003. Mr Alexander, Mrs Alexander and Mr Rumney invested £2 million into the hotel, converting the hotel's nightclub into a conference centre that could cater for up to 70 delegates. The conference centre is notable for its meeting rooms that bear the names of the architects who constructed some of Manchester's most renowned landmarks.



The current owners began looking for a buyer for the Princess on Portland last year because they decided to focus their attention on their other hotel, Castle Green, a 100-bedroom hotel in Kendal. Mr Rumney explains: "In order to get Princess of Portland to the next level, it would have required up to £1.5m spending on it. We also wanted to take Kendal from three to four-star status, so we had to take a look at things, examine where the company is and what was the right thing to do."



The Princess was sold through the Manchester office of top hotel agent Colliers Robert Barry. Chris Moore, a managing director of the company, said: "The sale of the Princess, and indeed the plans for further investment, reflect the confidence that continues to be shown in Manchester. The tremendous growth of the city and its economy demands top quality facilities of this standard, to ensure that Manchester maintains its position as a leading European city." While the exact price Harcourt Developments paid for the hotel has not been disclosed, it is thought to be within the region of the hotel's asking price of £8.5 million.



The Princess on Portland hotel is a large hotel that covers eight floors and has a variety of facilities such as a restaurant, bar and lounge. Although the hotel caters mainly to business travellers during the week, it also attracts many tourists at the weekend. The Princess has around 50 employees and an annual turnover of over £2.3 million.