Swedish real estate group Pandox AB and the Fattal Hotel Group have acquired the prestigious Midland Manchester hotel for about £115 million.

Pandox will take over the property and the Fattal Group will manage hotel operations for an initial 35 years based on a revenue-based lease agreement.

The Midland Manchester has 312 rooms, four restaurants and 12 meeting rooms. Its largest conference room can accommodate up to 700 people.

“With The Midland Manchester, we are adding a gem of British hospitality to our portfolio,” said Fattal Hotels Europe & UK managing director Daniel Roger.

“Together with Pandox, we plan to invest £11 million primarily in the rooms, bathrooms and upgrade the hotel’s technical standards.

“The investment program should start this year.”

Pandox CEO Anders Nissen said: “The acquisition of The Midland Manchester is industrially sound and meets all of Pandox’s acquisition criteria.

“The hotel, which has iconic status in Manchester, is an upper premium, full-service hotel with a very attractive central location and demand from all client segments.

“The hotel offers clear potential for increased revenues by upgrading the room product and by increasing the number of rooms.

“After the acquisition, Pandox will own two hotel properties with strong central locations in a city which is the economic and cultural nexus in one of the fastest growing regions in the UK.”