PORTS of Jersey is seeking a partner prepared to invest up to £100 million in developing a hotel on the site of the former La Folie pub, with ambitions to start construction in 2027.
Companies interested in what senior management figures from Ports of Jersey have described as a unique opportunity are now being invited to come forward during an initial 12-week week engagement phase.
Marc Clayson, head of ports real estate, said feedback from the first phase would be incorporated into a full procurement exercise anticipated to start this November.
“The formal procurement runs to a very tight time scale, and that’s looking to have a successful bidder appointed at the end of May 2026, and in contract immediately,” he said. “That would enable a planning application to be submitted by the end of next year, with construction starting in 2027 – it’s ambitious, but we believe we’ve got the right processes in place.”
The whole site, to be known as Merchant’ Quay, measures around 3,000 square metres, of which the listed La Folie pub site only makes up a small proportion. An “upper-midcale” hotel is envisaged with the potential for between 125 and 150 rooms across a total floorspace of 10,000 sq mtrs.
As a government-owned entity that will act as landlord for the project and work closely on the scheme, Ports of Jersey has emphasised that the successful bidder will need to bring a clear funding strategy for the project.
“We’ve put the funding amount at between £50m and £100m,’ Mr Clayson said. “Our current estimate is £60 to £65m, but it will depend on exactly what they build and when they build it.
“Ultimately it may be funded by an investment fund or a pension fund and a developer – the funding will need to be very clear to us as part of the procurement process.
“It initially sounds like a large figure, but it’s not when you look at the scale of what’s proposed – the commercial feasibility of the project has been assessed, and our advisors have said that it stacks up relative to the room rates that they’ll be able to achieve.”
Tom Wright, maritime programme manager, added: “The site is a unique one in terms of the interaction between the heritage aspects and the future hotel provision.
“It’s a really exciting project, and we know that there’s a real demand on the Island for more hotel beds, which is something we are very keen to support.”
Initial surveys of the site have taken place, indicating that it would be feasible to construct the hotel on bedrock, rather than on the quayside, while Ports of Jersey has pledged to maintain public access to the site, and to enhance the existing sporting and leisure uses of the area.
It has also been confirmed that the listed pub building, which dates back to 1725, would be refurbished after La Folie Inn closed in 2004, although it is not yet clear whether it may revert to its former use.
Mr Clayson said: “It doesn’t lend itself to being a pub – it closed for a reason, and the layout is challenging, but it is listed and will be part of the scheme.
“The hotel will obviously have a bar, but whether it’s there or not… the pub building might be a function room or event space, or possibly act as the reception area – we aren’t designers, so we are looking for an inspirational design that will work with historically sensitive buildings.”
