Planning approved for second Zedwell hotel in Manchester as Criterion Capital expands UK portfolio of pioneering city centre hotels

The 157-bed hotel is designed by Buttress Architects

Planning permission is now granted for a second Zedwell hotel in Manchester city centre, marking a significant milestone in Criterion Capital’s ongoing investment in the city and its wider programme of adaptive-reuse regeneration projects, delivering affordable, centrally located accommodation to Manchester.

The new hotel will be delivered within Church House at 90 Deansgate, a prominent corner building at the junction of Deansgate and St Mary’s Street. The scheme will sensitively refurbish and revitalise the non-designated heritage asset, retaining its historic character while introducing 157 beds for travellers seeking an affordable and convenient place to stay. Designed by Buttress Architects, the scheme carefully balances heritage preservation with contemporary functionality.

A key component of the proposal is the retention of the existing ground-floor commercial units wherever possible, ensuring the building continues to contribute to an active streetscape and the wider mix of retail, leisure and hospitality uses in the city centre. The hotel’s reception will sit at basement level to preserve the commercial activity at street level.

The development forms part of Criterion Capital’s reuse-first strategy to reinvigorate underutilised buildings through sustainable design and high-quality regeneration. The company is continuing to grow its Zedwell brand across major UK cities, with 9,000 current and pipeline hotel rooms committed by 2028, located in central destinations including Manchester and Edinburgh. Zedwell hotels are designed to offer simplicity, value and ease for guests. Its signature ‘cocoons’ provide a comfortable environment featuring soundproofed walls, purified air, body-cushioning mattresses and ambient lighting, giving travellers a calm and practical base from which to explore the city. Recently, Criterion Capital also launched a new capsule concept, opening the world’s largest capsule hotel at its London Pavilion site on Piccadilly Circus in the heart of London’s West End, featuring almost 1,000 beds, further pioneering innovative, city-centre accommodation.

Halima Aziz, Head of Hotels at Criterion Hospitality, said: “Church House embodies everything we stand for – adaptive reuse, thoughtful regeneration and a commitment to enhancing the places in which we invest. This transformation respects the heritage of Deansgate while delivering a modern, affordable hotel experience in a key city-centre location. As we continue our strategic expansion beyond London, Manchester represents an exciting milestone for our growing portfolio. As the UK’s third-largest city and a major tourist hotspot, it offers the perfect environment for Zedwell. We are delighted to be investing here and look forward to contributing to the visitor economy of this dynamic city.”

Gavin Sorby, Managing Director at Buttress, commented: “A city that has two Premier League sides and can fill a football stadium on a wet Wednesday evening for a concert, needs a broad hotel offer with enough rooms to satisfy the need. This latest scheme represents Criterion Capital’s second Zedwell hotel in the city with which we’re involved and we’re pleased to be able to bring this versatile hotel offering to Manchester.”

Planning consultants Savills supported the application throughout the planning process. Jay Patel, Director of Planning at Savills in Manchester, added: “With the regeneration that Manchester has undergone and continues to undergo, its appeal as a leisure destination for sports, arts, entertainment and culture has grown too. The securing of this planning permission for the latest Zedwell hotel will provide much needed – and a different type of – accommodation for this burgeoning interest in Manchester as a tourist destination that competes with other great European cities. We worked with extensively with council officers before the application was submitted to ensure it would be a smooth formal planning process.”

Criterion Capital’s new Zedwell at Church House represents another significant investment in Manchester’s hospitality sector, strengthening the city’s position as one of Europe’s leading visitor destinations.