RBS puts Sheffield hotel put up for sale

Sheffield Metropolitan Hotel
Sheffield Metropolitan Hotel

One of Sheffield’s best-known hotels has been put up for sale by the Royal Bank of Scotland – as it sells off properties acquired from failed customers.

The 10-storey Sheffield Metropolitan Hotel on Blonk Street in the city centre is on the market for £2.5million.

The building is owned by West Register, the property division of the bank’s controversial Global Restructuring Group which acquired assets from insolvencies.

An RBS spokesman confirmed it is winding down West Register and selling the property it holds.

In 2013, entrepreneur Lawrence Tomlinson said in a government-commissioned report RBS deliberately put some “good and viable” businesses into default so it could make more profit.

The allegations centred on the bank’s Global Restructuring Group lending division, which specialises in handling loans seen as being more risky. The bank last year asked law firm Clifford Chance to look into the claims and it concluded there was no evidence to support them.

Around the same time, RBS said it would sell its West Register property portfolio, reportedly worth £3billion.

RBS’s head of regulatory affairs, Jon Pain, said then it was due to “a damaging perception the bank had a conflict of interest when it purchased a property as part of a restructuring process.”

It also blamed strict new capital requirements for banks holding property.

The 111-room Metropolitan is being marketed by agents Colliers International as a ‘rare opportunity’ which includes a restaurant, bar and meeting rooms.

It also has a former petrol station at the front. Plans have been submitted to Sheffield City Council to turn it into a cycle shop, large cafe and entrance lobby.

Julian Troup, head of UK Hotels, Colliers International, said: “The Sheffield Metropolitan provides a rare chance to acquire a large city centre hotel with opportunities to substantially increase trade.

“It is in the heart of a regeneration zone which will see the corridor linking the Riverside Business District to the rest of the city centre transformed as the traditional city core continues to expand.

“For the right buyer, there exists an exciting opportunity to reconfigure the ground floor of the hotel to make the most of these new surroundings. Coupled with the further development opportunity presented by the former petrol filling station shop, we expect to see high levels of interest for the Metropolitan.”