Velvet Hotel, 2 Canal Street, Manchester, M1 3HE

Situated in the heart of Manchester’s renowned Canal Street district, Velvet Hotel, Bar & Restaurant represents a unique opportunity to acquire an iconic freehold hospitality business in one of the city’s most vibrant and sought-after locations. The Hotel occupies a mid terraced building which forms part of the original cotton mills which are located alongside the canal and date back to the construction of the Rochdale Canal in 1804.

Comprising a stylish boutique hotel, contemporary bar, and acclaimed brasserie-style restaurant, the property offers a fully operational, design-led hospitality destination with a proven trading history and exceptional reputation.

Established as a hotel in 2009 and significantly enhanced through refurbishment and expansion programmes completed in 2022, Velvet has evolved into a sophisticated lifestyle destination attracting both business and leisure visitors. The property combines character, luxury, and strong operational performance within a landmark Manchester setting.

Occupying a prominent position on Canal Street, just minutes from Manchester Piccadilly Station, the property benefits from excellent connectivity and year-round footfall. The surrounding area is home to a diverse mix of hotels, residential developments, restaurants, bars, and leisure operators, including the recently completed Kampus development, which has further enhanced the areas appeal and residential population.

The hotel has been carefully developed to an exceptional 4-star boutique standard, with each guest room individually designed to create a distinctive and luxurious experience. The interiors complement the character of the bar and restaurant, featuring bespoke furnishings, high-quality fittings and a design-led specification throughout. This unique approach enables the property to compete effectively with Manchester’s leading boutique hotel offerings. The original upper four floors were converted into a boutique hotel in 2009, creating 19 stylish double en-suite bedrooms. These include three sought-after Balcony King Rooms, positioned at the front of the building with private balconies overlooking the vibrant Canal Street, together with three split-level Penthouse King Suites, ingeniously developed within the roof space and featuring mezzanine-level sleeping areas.

The basement restaurant is accessed via a dedicated entrance on the right-hand side of the building, with a staircase descending directly from Canal Street. The premises benefit from a contemporary brasserie-style fit-out and underwent an extensive refurbishment in 2019. The accommodation is thoughtfully arranged, with a welcoming dining area positioned at the front of the premises, providing seating for approximately 80 covers. The specification is of a high standard throughout, featuring a combination of tiled and timber flooring, decorative painted brick and papered wall finishes, and characterful exposed beam and plaster ceilings. Together, these elements create an inviting and stylish dining environment suitable for a range of hospitality operators. This restaurant is currently not trading, and the current owner has a number of offers to lease it.

The ground floor bar is accessed via a dedicated entrance from Canal Street, positioned on the left-hand side of the building and approached by a short flight of steps. A welcoming entrance lobby leads directly into the principal lounge bar, which features a split-level seating area to the front and a centrally positioned timber bar servery to the rear. Beyond the lounge bar, a secondary lobby provides access to the beer cellar and ancillary storage areas, together with double doors opening onto Richmond Street, offering additional access and operational flexibility. The accommodation is presented to a high standard throughout, featuring a contemporary finish with a combination of carpeted and timber flooring, painted plastered walls, and modern ceiling finishes. Velvet benefits from a Manchester City Council licence authorising the use of external seating on the cobbled areas and carriageway of Canal Street, in line with neighbouring licensed occupiers. The approved licensed area extends to a maximum of 15 metres by 4.6 metres, equating to approximately 69 sq m of valuable outdoor trading space.

In 2021, the acquisition of the adjoining building facilitated a significant expansion of the hotel, introducing an impressive collection of additional accommodation including Velvet King Rooms, signature suites and three bespoke luxury suites, headlined by the prestigious Velvet Suite. Further investment was made in 2022 when the original hotel bedrooms underwent refurbishment, including the installation of new contemporary
bathrooms. All guest accommodation is fully air-conditioned and equipped to a premium standard, featuring complimentary Wi-Fi, digital flat-screen televisions and in-room minibars. The split-level penthouse suites provide enhanced living space, incorporating dining areas, comfortable lounge seating and a feature staircase leading to the elevated bedroom mezzanine. Together, these facilities create a highly attractive hospitality offering that appeals to both leisure and business travellers seeking an upscale city-centre experience.

Located in the heart of Manchester’s renowned Village, Velvet Hotel, Bar & Restaurant represents a rare opportunity to acquire an established freehold hospitality business in one of the city’s most vibrant and sought-after destinations.
The Property occupies a collection of historic buildings forming part of the Village’s distinctive architectural character, combining period features and heritage with sophisticated contemporary design.