Oberland takes a stake in Manchester’s Heathcote hotel

The Heathcote hotel in Manchester has been acquired by global real estate investment platform Realvantage in a £14m deal in partnership with new hotel group Oberland.

The off-market acquisition of the Grade II-listed property in Manchester, formerly known as Abode Manchester, marks Realvantage’s second collaboration with Oberland, with Oberland taking a 15% stake compared to Realvantage’s 85%.

Oberland is the brainchild of US property developer William Riordan and private investment executive Andrew Dean.

The Heathcote hotel is considering closing in April to allow for a six-month refurbishment, which will see room count increasing from 61 to 78 keys upon completion of the programme in October.

Realvantage expects the hotel to deliver a 16% net internal rate of return over an investment period of 36 months.

The property will be managed by hotel and serviced apartment investment specialist C1 Capital once it opens. C1 Capital currently manages seven hotels across the UK comprising 1,300 bedrooms.

It comes as Oberland prepares to open its first hotel, the 76-bedroom Arthouse Glasgow, next month.

The Glasgow hotel will be the new home for Dean and Anna Parker’s Michelin Bib Gourmand Celentano’s Italian restaurant, following the announcement of its relocation from Cathedral House, where it has been based for the past four years.

Keith Ong, co-founder and chief executive of Realvantage, said: “A core pillar of this opportunity is significant sponsor capital commitment by Oberland and co-investment together with RealVantage, demonstrating a shared investment philosophy centered on value-add strategies, disciplined asset management, and long-term capital growth.

“With a soft launch targeted for October 2026, active asset management will commence thereafter. RealVantage will then undertake investment monitoring and oversight responsibilities; with a focused 12 to 18 month asset management period aimed at optimising operating performance and value realisation.”

The Heathcote hotel was built in 1899 by influential Mancunian architect Charles Henry Heathcote.