North-east based Malhotra Group has kick-started a £5.6m transformation of the Three Mile Inn in Gosforth, Newcastle, into a 64-bedroom hotel, bar and restaurant.
The business, which currently operates as a bar and Scalini's Italian restaurant, will remain open during the phased-conversion work.
A three-storey extension will initially be built, followed by the conversion of the existing building from two to three storeys and the creation of conference, function and private dining rooms, residents' lounge, café, bar and restaurant.
Atul Malhotra, director of operations at Malhotra Group, said: "Our aim is to create a hotel and leisure facility which will be a real credit to Gosforth and a genuine asset to the community."
Malhotra Group is a property company with interests in care homes, commercial buildings and the hospitality sector since 2004, when it acquired the Duke of Cumberland pub in Newcastle.
In 2013 the company bought the Grey Street hotel in Newcastle and has recently completed a £1.2m refurbishment of the 49-bedroom property.
Future plans for the group include a sports themed bar, new gin bar and additional bedrooms at the New Northumbria hotel in Jesmond.
Malhotra Group spends £3m on Newcastle hotels refurb >>
Videos from The Caterer archives