The University-owned Chancellor’s Hotel in Fallowfield is closing on December 2 and will be turned into a ‘student hub’.
An announcement posted on the internal StaffNet page said the hotel experienced “particular challenges due to its location,” and that the market in and around Manchester had become increasingly competitive.
It is owned by University of Manchester Conferences which is planning 64 catered en-suite rooms, a study area, office space, and a café from next September.
The University has said it will try to relocate the hotel’s 57 staff members to jobs within the conference company, or within the university itself.
The new student accommodation will become the latest addition to an ever-growing Fallowfield campus, with the £90m development Unsworth Park being opened over the summer.
Historically, the building and grounds belonged to Sir Joseph Whitworth and editor of The Manchester Guardian CP Scott – who then left the property to the University. It has historically been used as residence for the institution’s Vice Chancellor.
In a statement Diane Hampson, the University’s director of estates, said: “By using the site as a student hub we will be able to deliver significant savings to our ongoing accommodation projects at nearby Oak House, whilst also improving the overall student experience.
“Over recent years our team at Chancellors has worked successfully to increase income and to reduce costs, and deliver a more sustainable financial model. However, the hotel has been operating in an increasingly competitive market in and around the city and has particular challenges due to its location.
“We have not taken this decision lightly and would like to thank the management and staff at Chancellors for their hard work and commitment over the years.
“We hope that Chancellors in its new form will be a significant addition to the emerging high-quality student residences offer in Fallowfield, as this unique building enters a new phase in its life.”