Cheltenham reacts to luxury spa hotel plans for municipal offices
News has broken that the preferred bidder for Cheltenham's Grade II* municipal offices wants to turn the building into a luxury hotel and spa - but what do the town's businesses think about that?
Dear readers,
Welcome to Thursday’s Raikes - the day we usually send out a single story ahead of our full Friday edition.
And ‘yes’, we do often paywall the Thursday edition to help pay for what we do - but not today. We know a version of this news is out there. Or at least the press release is.
Insider Media was first to do Cheltenham Borough Council’s marketing for it this morning, posting the release from the local authority that announced a preferred bidder for its municipal offices had been found and that plans were to turn the building into a luxury hotel.
Other websites followed in quick succession, as if competing in some kind of race, but adding nothing new to the story - as exciting as it is at face value.
Had anyone spoken to anyone in the town about it?
‘Yes’, we have. After all, are they not the people who matter in all of this?
We hope you enjoy the read. And if you like what we do and want to receive our stories and editions direct to your inbox, please do subscribe - for free or as a paying member.
Best regards,
Andrew Merrell (editor).
For every person you refer to The Raikes Journal’s email service you get points towards a free membership allowing you to see beyond our paywalls. Please do sign up (free or otherwise), send the referral link to a friend or colleague, and help us grow.
Cheltenham reacts to plans to turn municipal offices into luxury spa hotel
News has broken that the preferred bidder for Cheltenham's Grade II* municipal offices wants to turn the landmark building into a luxury hotel and spa - but what do businesses in the town think about that?
By Andrew Merrell.
A private equity and investment manager, described as “a big player”, has been named as the man heading up the “preferred bid” to transform Cheltenham Borough Council’s municipal offices into a ‘luxury spa hotel’.
Rather than just post the press release from the borough, The Raikes Journal picked up the phone to see what the town thought about the news, and we’re reporting the reaction below.
What seems to be of most importance to those we spoke to is that the building, put on sale with Avison Young by the council in September 2024 (with no asking price), could now have a new purpose that could also boost the town’s economy.
The excitement was tempered only mildly, and only because there is so much detail yet to emerge, but otherwise unanimously welcomed on a scale ranging from ‘enthusiastic’ to ‘enthusiastic with some caveats’.
Mario San Jacinto, of Almiranta Capital Ltd, is named as the man looking to take forward the project to deliver what the borough is calling “a luxury brand hotel, offering 125 rooms, a spa, event, banqueting and conference space”.
The council’s press release, complete with lines about how the development could create “a destination for locals and travellers alike, a versatile offering for business, adventures, culture and relaxation”, describes San Jacinto as having “previously delivered high-end hotels across Europe”.
Raikes understands his previous projects include Edition by Marriot Opera Paris (currently Westin Opera), the Apple Paris flagship store, three Meliá Hotels in Paris, Canalejas Four Seasons Hotel & Residences in Madrid and Raffles London Hotel at The OWO.
Lindsey Holland, from Cheltenham Chamber of Commerce, and the owner of Cleeve Hill Hotel, said: “He (San Jacinto) is a big player. He has done a lot of work with Marriott (the hotel chain).”
As for the business case for a new hotel in the centre of a town with just 120,000 residents, Holland said: “If you look at it from the point of Cheltenham Festival alone, the town attracts between 50,000 and 60,000 visitors a day - and yet it only has a fraction of that number in terms of accommodation.
“We are a small town that hits big. We are a festival town and we have companies visiting because of the likes of the Golden Valley development (a major £1bllion development to the East of Cheltenham), and they need somewhere to stay.
“But what we need to do is make sure the project elevates the town even more, that the council makes sure it benefits the local economy, that it uses local trades to help with the redevelopment, that it is not exclusive, but involves people from the town and allows them to use its facilities, its conference rooms and so on; that it becomes an asset.”
The 68,290 sq ft, Grade II* four-storey (with a basement) municipal offices face the town’s famous Promenade, and are set back behind a strip of green space.
Although the long terrace stretches from the Neptune Fountain (Cheltenham’s version of the Trevi Fountain in Rome, Italy) at the south west end up to Crescent Terrace at the Northern end, the council offices are a single mid-terrace building in the middle.
The ‘ownership’ extends from Winkworths (estate agents) on the south west end to Simon Burn (solicitors) on the north east end.
Originally 13 town houses, the space includes odd numbers 49 to 79 The Promenade with the sale including the bike shed, council chamber, public toilets (at the rear) and all the extensions at the rear of the building.
Raikes understands the council received 11 bids, with four being shortlisted and three taken through to final interview stage covering a “range of proposals”, all of which remain under wraps.
As if he had read Holland’s mind, San Jacinto said: “What remains important in our proposal is the economic and civic pride boost that our scheme will offer to Cheltenham and the region.
“We want to create a place where visitors and local people will come together socially and for business, which is well connected to all that Cheltenham and the Cotswolds have to offer.”
The borough council itself said the scheme would “enhance Cheltenham’s cultural scene”.
Francesca Inman, chief executive of Cheltenham BID, which represents approximately 800 businesses across the centre of the spa town, said the team behind the proposal was already communicating.
“I have already had conversations with the people involved in the bid. That is really positive,” said Inman.
“I think it (the proposal) looks like it could be a major win for Cheltenham and gives a good sense of the town moving forward too, which is great for public confidence.
“It should provide a boost to our economy to help it grow while at the same time helping preserve what is an iconic listed building which is part of the town’s heritage.”
San Jacinto added: “We are incredibly pleased to have reached this stage and will continue to remain focused on bringing our proposals forward.
“We have assembled a truly world-class delivery team, comprising a commanding combination of both local and international real estate experts.”
Almiranta Capital is a boutique real estate private equity advisory and development firm headquartered in Boston, Massachusetts, but has a UK headquarters in Great Marlborough Street, London.
“Our portfolio includes the delivery of international hotels, as well as the refurbishment and management of many Regency buildings.
“We have created a vision that will transform the Municipal Offices, recognised as a landmark heritage building, into a prized asset for Cheltenham as the Festival Town and beyond,” said San Jacinto.
“We recognise the building is at the heart of the town and understand that in addition to the sale of the building, ensuring final delivery of the project will also be of primary importance to the borough council and all those who have an interest in this much-loved building.”
Councillor Rowena Hay, leader for Cheltenham Borough Council said the bid was “now entering a period of due diligence”.
“It’s vital that throughout these next few months, we ensure that the proposals will deliver against our aspirations and for the economic, environmental and cultural benefits of the town.
“At every stage, we have committed to ensuring that the sale will bring benefit to Cheltenham, and retain the heritage of this magnificent building, which is, and will continue to be, at the very heart of our town centre.
“I feel incredibly positive for the town centre and county as a whole.
“If this bid is successful, we will see a new lease of life for the building and a space which can be used and loved by visitors, residents, community groups and businesses.
“This is what I feel is so right about the scheme – it’s about bringing people together, and creating a vibrancy and positive change in this part of our town centre.”
Future steps are understood to involve planning and deal completion, with the potential buyers keen to engage with local, regional, national and international stakeholders.
Raikes was told no timetable was currently in place for the bid process which, if successful, will then be subject to the planning process too.