Hilton to open in Gateshead next summer

Hilton is to open a 254-bedroom hotel in the North-east of England next summer.

Building has started on the Hilton Gateshead and is due for completion in August 2003. Morley Fund Management has invested £30m in the project, and will lease the hotel to Hilton under a management deal.

The hotel will employ about 150 staff, headed by general manager Ian Hughes-Rixham, who is currently special projects manager at Hilton's head office in London.

Hilton is looking for an investor for a similar deal in Manchester, where it hopes to open a city-centre hotel in 2004.

The Gateshead project comes at a time when Hilton is looking for expansion without having to dip too far into its own resources.

In August the group raised £336m by offloading 10 hotels to an investment vehicle headed by the Bank of Scotland and property developer Rotch Group.

A spokesman said that the group had not ruled out similar sale-and-leaseback deals for the future.

Source: Caterer & Hotelkeeper magazine, 28 November - 4 December 2002