The 49-bedroom Grey Street hotel in Newcastle is to undergo substantial investment after being acquired out of administration for an undisclosed amount, off a sale price of £3.75m.
The boutique property has been bought by the Malhotra Group company, an expanding leisure group in the city which owns the Louis restaurant, Osborne's and Scalini's in nearby Jesmond, and the Three Mile Inn in Gosforth. The company believes that this latest acquisition will compliment the five-star hotel it is currently developing elsewhere on Grey Street.
The freehold sale, which was handled by Colliers International on behalf of administrators BDO, included rental income from national bar and restaurant operator The Living Room, which leases part of the building.
Peter Bean, director of Colliers International, said: "This was an unusual sale in that it comprised a going concern hotel with investment income from a high profile leasehold bar and dining operation. The sale generated numerous competing bids from buyers keen to be represented on this fashionable city centre street."
Newcastle's Grey Street hotel goes on market after falling into administration >>