A DEAL has finally been agreed to build a new hospitality academy hotel, the first of its kind in the UK.

Hotels in Manchester employ 9,000 people and generate £1bn to the city economy, it is a vitally important sector.

After trying to find a site in city centre Manchester for the last five years Manchester Confidential understands that the £40m project will now be built in Oldham.

The Manchester Hoteliers Association which is behind the idea is expected to confirm the exact location next month.

A spokesman said: “We have signed the agreements and hope to be on site by the end of this year and open for late 2013. It is a tight timescale but this is a crucial initiative for our industry.

“It’s a real coup for the region and it is only because everyone is so connected and ambitious that we have been able to pull it off.”

Previous possible locations have included Whitworth Street, the former Boddingtons Brewery site and within the Co-op’s NOMA development.

Hotel Future will be an 'up-scale', fully functioning hotel with 80 bedrooms, a destination bar, two restaurants, spa facility, lecture theatre, meeting rooms and a terrace adapted at design stage to accommodate teaching.

The project is being privately funded and it will be run as a charitable trust with any profits re-invested in the hotel.

The aim is to provide top level training across all sectors and levels of the hospitality industry for around 200 apprentices a year and shorter courses for management and professional development.

The curriculum and accreditation is being co-ordinated by Manchester College, Oldham College and Rochdale College and the hotel will employ 33 full-time professional staff.

The spokesman said: “Hospitality is the fourth biggest industry in the country. Hotels in Manchester employ 9,000 people and generate £1bn to the city economy, it is a vitally important sector.

“To provide a top class service we have to give staff the right skills and training and this academy hotel will take that provision to a different level.

“At the moment the hospitality industry is not highly respected in this country but we expect this initiative to help change that and expect competition for places to be tough. We want to train the next generation who see hospitality as a rewarding and worthwhile career.”

The hotel will get revenue from both paying guests and from government for providing training apprenticeships.

As the MHA spokesman said: “Students will be delivering a real life experience to real life guests spending their hard earned money. What better training can you get?”