The Municipal Offices on Cheltenham Promenade look set to become a luxury spa hotel, with Cheltenham Borough Council revealing its preferred bidder in the process of selling the flagship building.
A proposal to transform the Grade II-listed building into 'a vibrant, luxury brand hotel' with 125 rooms, a spa, event, banqueting and conference space has been selected by the council as its preferred bid this May 2025.
The council says the bid comes from 'an international team which has previously delivered high end hotels across Europe'.
Plans to sell the 19th century building – at which the council has been based for more than 100 years – were approved in 2023, with the council agreeing that a rise in home working meant the offices were no longer appropriate for the local authority, with staff only occupying around half of the building.
The council says the preferred bid sets out a proposal for a hotel which is 'a destination for locals and travellers alike' and 'a versatile offering for business, adventures, culture and relaxation'.
The authority will engage with the bidder over the next three months, during which time the proposals will be evaluated, following the signing of an 'exclusivity agreement'.
Details of how much the council will gain from the sale, along with any further detail of the scheme, remain 'commercially confidential' at this stage, the council says.
Heading up the team, Mario San Jacinto of Almiranta Capital Ltd said: 'We have created a vision that will transform the Municipal Offices, recognised as a landmark heritage building, into a prized asset for Cheltenham as the Festival Town and beyond.
'What remains important in our proposal is the economic and civic pride boost that our scheme will offer to Cheltenham and the region. We want to create a place where visitors and local people will come together socially and for business, which is well connected to all that Cheltenham and the Cotswolds have to offer.'
Rowena Hay, leader of Cheltenham Borough Council, said: 'The proposals to transform the offices into a luxury hotel, I feel are incredibly positive for the town centre and county as a whole.
'If this bid is successful, we will see a new lease of life for the building and a space which can be used and loved by visitors, residents, community groups and businesses.
'This is what I feel is so right about the scheme – it’s about bringing people together, and creating a vibrancy and positive change in this part of our town centre.'
