Martin Property Group to Redevelop and Operate Chester Grosvenor Hotel in Major Refurbishment

Grosvenor has selected Martin Property Group to lead the redevelopment and, upon completion, operate The Chester Grosvenor Hotel, the companies announced Sept. 8, 2026. The partnership marks the first extensive refurbishment of the Grade II listed, five-star property in more than 40 years and is intended to reposition the hotel as a destination of national and international standing.

The hotel, located on Eastgate Street in the heart of Chester, will close Sept. 30 following Bespoke Hotels' decision earlier this year to cease operating the property. Grosvenor, which retains the freehold of the hotel site, will partner with Martin Property Group on the capital programme while Martin assumes operational control once the work is complete.

Scope and Timeline of the Refurbishment

Final plans for the project are still being developed, but the scheme is described as bringing together sensitive conservation and contemporary design to deliver a five-star guest experience. Subject to planning consent, works are expected to take approximately two years from commencement. The Grade II listing imposes heritage protections that add complexity to the programme.

Grosvenor has framed the refurbishment as securing the long-term future of the property while strengthening Chester's tourism and hospitality economy. The hotel is Chester's only large five-star hotel, underscoring the significance of its closure and the stakes attached to its repositioning.

"We are delighted to have chosen Martin Property Group to shape the next chapter of the hotel's history and, upon completion, to operate the business," said Nicholas Dobbs, Head of Grosvenor's Family Office and Grosvenor Rural Estates. "Grosvenor has deep roots in Chester and a long-term commitment to its success. It was vital to us to choose a partner that shares our values and outlook, with the credentials, independence and perspective needed to protect the character that makes the hotel so special. Our ambition is to reopen as The Chester Grosvenor, creating new employment, strengthening Chester's tourism and hospitality economy and delivering long-term value for the city."

Martin Property Group's Growing Chester Platform

Martin Property Group is a family-owned organisation with operations across the UK and Ireland and a portfolio that includes luxury hotel assets. The firm's involvement in Chester predates this announcement by several years. In 2022, Martin Property Group acquired the freehold of the former Grosvenor Shopping Centre — now Eastgate Shopping Centre — from Grosvenor, a transaction that encompassed approximately 212,000 square feet of retail space, a Jury's Inn hotel, and a roughly 400-space car park. Martin subsequently acquired the long leasehold interests of the centre and associated assets from H.I.G. Chester Property S.a.r.l. in November 2022, consolidating control of the shopping centre within its capital stack.

The firm also acquired the former Debenhams building as part of a series of strategic acquisitions in the city. Martin has since invested in bringing Harrods to Chester through the redevelopment of that asset, creating a major new retail destination in the city centre.

With the Chester Grosvenor hotel added as a redevelopment and operating mandate, Martin Property Group now controls a cluster of assets in a compact area around Eastgate Street that includes prime retail, an existing mid-market hotel, a city centre car park, a flagship luxury hotel, and a major former department store property.

"The Chester Grosvenor represents the next chapter in our significant and growing investment in the city," said Paul G. Martin, Managing Director of Martin Property Group. "This partnership reflects our confidence in Chester and our long-term commitment to the city. We understand the responsibility that comes with being the long-term custodian of a building of this importance. Together with Grosvenor, our ambition is to create an exceptional five-star hotel that celebrates its remarkable heritage while establishing a contemporary destination of national and international standing. We look forward to taking responsibility for the next chapter of this exceptional hotel, being part of its transformation and ensuring the Chester Grosvenor remains one of the city's great landmarks for generations to come."

Strategic Context: Operator Exit and Repositioning Opportunity

The trigger for the redevelopment was Bespoke Hotels' decision to cease operations at The Chester Grosvenor following the 2026 summer season. Grosvenor had publicly identified finding a new operator and funding a comprehensive refurbishment as its top priority following that announcement. Rather than replacing Bespoke with a like-for-like operator, Grosvenor used the vacancy as an opportunity to reset the asset through a capital-intensive repositioning programme.

The choice of Martin Property Group as both redevelopment partner and future operator reflects the existing relationship between the two organisations, which stretches back to the 2022 sale of the Eastgate Shopping Centre freehold. Grosvenor cited Martin's track record in landmark regeneration, its experience operating luxury hotels, and its demonstrated understanding of Chester's market as factors in the selection.

Grosvenor's Family Office and Rural Estates division will retain the freehold of the hotel site throughout the redevelopment and beyond. The investment is described as private and is intended to support both the long-term future of the property and Chester's broader hospitality economy.

Outlook

The project is subject to planning consent, and final design plans have not yet been finalised. Once reopened, the hotel is expected to operate under its existing name, The Chester Grosvenor. The partnership between Grosvenor and Martin Property Group positions the two firms as significant drivers of Chester's central commercial and hospitality offer, with Martin assembling a portfolio of retail, hospitality, and parking assets in the city's historic core while Grosvenor retains freehold interests across key sites.