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Commercial Property

Rebirth of Birmingham's Grand Hotel on hold after tendering blow

The historic Colmore Row building is no closer to returning as a hotel despite interest from operators and detailed designs being drawn up.

The Grand Hotel on Colmore Row during renovation work in 2011.

Plans to get Birmingham’s Grand Hotel up and running again have suffered a major blow after developers were unable to agree a deal with builders.

The historic Colmore Row building, which is undergoing extensive facade work, is no closer to returning as a hotel despite interest from operators and detailed designs being drawn up.

Tony Green, chief executive of Hortons’ Estate, which has owned the building since it built it in 1875, said there had been a disappointing response after the work went out to tender.

He said a single construction firm would need to oversee an 18-month project to make the scheme viable, but the antiquated nature of the building has put off some contractors.

Installing lifts, broadband and IT infrastructure into the building, as well as modernising it for the 21st century, is proving difficult.

However, Mr Green said the firm had not given up hope of delivering a luxury hotel with 152 rooms and eight new suites at the architectural gem, where Malcolm X gave his last speech in England.

He said: “We have been working away trying to get the designs of the hotel finalised to a point where we can send them out to builders and start getting it built. We managed to get to that point and we have been receiving feedback from builders, and it hasn’t been encouraging.

“I was imagining from that process we’d get someone to come forward for all the heritage work, the roof, the electrics and everything would be finished, but that wasn’t the reaction from builders.