easyHotel signs lease for coffee shop and new hotel at former Groove nightclub in Ipswich

The former Groove nightclub in Ipswich which is being converted into an easyHotel.

The former Groove nightclub in Ipswich which is being converted into an easyHotel. - Credit: Archant

A new “super budget” easyHotel due to open in Ipswich later this year will include a coffee shop.

The low-cost operator paid £800,000 for the freehold of the former Groove nightclub building in Northgate Street a year ago and has now recouped £140,000 by agreeing a 999-year lease on part of the ground floor for use as a coffee outlet.

The 94-bedroom hotel, planning permission for which was granted last summer, involves a total investment by easyHotel of around £4m.

The branding of the new coffee shop has not been disclosed but three major chains each already have a presence nearby – Starbucks within the former Great White Horse hotel on the corner of Tavern Street and Northgate Street, Costa just opposite on the corner of Carr Street and Caffe Nero on the corner of Upper Brook Street and Buttermarket.

Due to open this summer, the Ipswich easyHotel is one of four currently under construction in the UK, with others in Birmingham, Liverpool and Manchester all scheduled to open in the next two months.

The chain, founded by Sir Stelios Haji-Ioannou in 2005, already has eight hotels in and around London and others in Edinburgh and Glasgow. The brand is also being developed in a number of other countries, with some hotels operating on a franchised basis.

News of the coffee shop deal in Ipswich came alongside a trading update issued ahead of the company’s annual general meeting in which it said that trading so far during the year to September 30, 2017, had been in line with expectations.

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Guy Parsons, chief executive, said the company’s owned hotels had continued to outperform the general market.