Singapore-headquartered developer Fragrance Group, has acquired the Townhouse hotel from Harcourt Developments in a £12.5m deal. 

Harcourt Developments was represented by Lambert Smith Hampton. 

The Grade II listed property, which dates back to 1870 and was formerly a cotton warehouse before opening as an 85-bedroom hotel in 1982. 

In 2010, the Portland Street property underwent an extensive refurbishment programme to create a four star boutique hotel with a brasserie, bar and self-contained business centre.

Alistair Greenhalgh, a director at LSH Hotels, added: “The sale of the Townhouse Hotel in Manchester illustrates the current appetite for prime city centre hotels as, yet again, we have seen competitive bidding on a prime asset.

“The Brexit referendum and subsequent slump in the value of the pound is attracting overseas investors in their droves, many of which are keen to take advantage of the currency trade off by pursuing UK hotel opportunities.”

Under its new ownership, the property will be managed by Bespoke Hotels.

Fragrance Group was represented by real estate advisor Savills.