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Dakota Manchester, the luxury city centre hotel close to Piccadilly Station, is investing £1m into a new-look terrace which will offer space for private events and even classic afternoon tea for the first time.

The £30m hotel, which launched last May, boasts 137 rooms including 20 suites over eight floors and is also home to a ‘cigar garden’, a champagne room, and a brasserie restaurant with waterside views across Piccadilly Basin.

The latest plans will see an extensive refurbishment of its waterside terrace which will be unveiled in spring.

The 170m terrace will be a dedicated outdoor space, with retractable canopies to the roof and sides for sunnier days - which means it can be used all year round for al fresco drinking and dining as well as available for exclusive use and events for up to 80 guests seated and 100 standing.

A minimal structure will frame the terrace, with venetian fencing and stone covered flooring to create a modern, contemporary feel.

The redesign concept has been created by KPP Architects and features ‘cool, understated seating and dining areas and muted tones of luxe décor’ alongside green foliage and climbing trees.

Dakota Manchester’s general manager, Matt Townley, said there has been strong demand from customers who not only want a private event space but want to use the terrace throughout the year.

Mr Townley said: “The current terrace has been a popular space for the hotel, but we could see the potential to do more and offer our customers another level of experience that they have come to expect from the Dakota brand.

“At the moment we are not able to offer room for private events and the new investment will mean not only can we do that, but we can also open up the terrace for all occasions and all weather conditions allowing for private events, drinks receptions and al fresco dining.