Sandpiper hotel is bought for £1.35m

The new owners of the hotel, on Sheffield Road, say there will be no job losses following the deal.

It comes after owner David Cook, who built the premises in 1975 and ran the hotel as a family business, decided to retire.

The Sandpiper has been bought by specialist hotel investment firm Shepherd Cox in a deal brokered by real estate advisors Colliers International.

Neil Thomson, associate director, hotels agency at the Manchester office of Colliers International, secured the deal and said: “We have seen a huge increase in demand from private investment companies which view the leisure sector as a profitable alternative to traditional property investments.

“Hotels in particular offer a reasonably low risk option because they provide a relatively guaranteed rental yield, based on consistently high occupancy levels.

“To this end, we have noticed that hotels still attract interest with premium prices paid for high quality assets and particularly those that offer potential to improve the pattern of trade or a development opportunity.”

The sale comes after The Chesterfield Hotel on Malkin Street was bought by Prestige Hotels (Midlands) Ltd for £900,000 in April.

The hotel shut more than two years ago and the business which previously owned the huge property, GS Estates VI Ltd, collapsed into receivership amid a background of financial problems