The North West based group plans to invest £27m in strengthening its presence throughout the UK, after reporting an annual turnover of £4.8m in 2013. It plans to acquire additional sites as well as setting up the two new brands.
Currently the group have two five star aparthotels in Manchester, as well as a four star aparthotel site in Edinburgh. Blue Rainbow also recently launched Tea 42, its first restaurant venture, which is predicted to contribute £1m to the company’s turnover in its first year of operation.
Blue Rainbow will be launching two new brands, Cityspace and Citycube Hotels. The Cityspace locations will build on the model for luxury aparthotels that the group already has, while the Citycube hotels are intended to break into the budget hotel market. By the end of 2017 Blue Rainbow intends to have launched at least five new sites.
Blue Rainbow Group managing director Will Hannah said: “Over the next 12 months we plan to introduce our Cityspace brand which will mark the next phase of our expansion drive. Cityspace will feature increased levels of luxury and additional facilities, including on-site restaurants where appropriate, utilising our already successful Tea 42 restaurant brand.
“We have also been developing a budget hotel model for the past couple of years and should be ready to bring the first of these to the market by early 2016 under the name of Citycube Hotels.”
Blue Rainbow group also plans to add 560 more rooms to its collection and is scouting for sites in Birmingham, Liverpool, Newcastle, Leeds and Manchester. The group also plans to open a minimum of four Tea 42 restaurants in the next year in the North West area, and has a target of owning 20 restaurants altogether. With the two new brands and planned restaurants, Blue Rainbow intends to create up to 200 jobs over the next five years.
Hannah explained: “A new site’s potential for development is a major point we consider when sourcing suitable locations, as we’re not afraid to completely redesign layouts to fit our requirements. In addition to this, we look for other potential vacant sites close by, which can potentially develop into Tea 42 restaurant units.
“The launch of our new brands will enable us expand on the firm foundations that Blue Rainbow aparthotels and Tea 42 have created. We aim to grow the Blue Rainbow Group in to one of the UK’s leading hospitality management companies, while keeping close to our original brand ethos.”