A new Ramada Encore hotel worth an estimated £20m is to be added to the National Exhibition Centre (NEC) site in Birmingham following the announcement today of the sale of the NEC Group’s headquarters in a multi-million pound deal.

The headquarters – NEC House – and related property are to be sold on a long leasehold to the Alfred McAlpine group in order to convert the building into a 164-bedroom Ramada Encore hotel.

The 50,000 sq ft (4,645sq m) Bickenhill Lane building, on 2.3 acres of land, will be redeveloped into the hotel and open for business by 2008.

NEC Group office staff will be relocated to the main exhibition centre buildings.

The deal is conditional on a successful planning application but is expected to generate “a substantial sum” for the NEC Group and its owners, Birmingham City Council.

NEC Group Chief Executive Andrew Morris said: “This deal will improve operational awareness within the group and deliver another high-quality hotel on the NEC site which will improve the all-round experience of our visitors”.

Work is likely to start on-site at the end of October 2006 and will not disrupt The NEC’s exhibition business.

The NEC and Birmingham City Council were advised by Savills in this transaction. Details: www.necgroup.co.uk