A care home company has bought the Vermont hotel in Newcastle upon Tyne out of administration off an asking price of £9m.
Property agent Christie & Co and Colliers International Hotels jointly handled the deal, which saw Gainford Care Homes buy the property, on behalf of Deloitte which was handling the administration.
The 101-bedroom, four-star hotel sits adjacent to Moot Hall and Newcastle Castle.
Jonathan Parrish, head of investment at Christie & Co, and Julian Troup, head of UK hotels agency at Colliers International, said: "The sale of The Vermont hotel is one of the biggest hotel transactions that have taken place in the North-east in recent years. The sale is a renewed reminder that there is continued appetite for well-located hotels, particularly those that offer potential to trade at an improved level.
"We were approached by a multitude of different types of buyers and Gainford Care Homes presented the most favourable option. We understand that their intention is to undertake a substantial refurbishment programme and reaffirm the hotel's position in the city's top flight of hospitality offerings."
Adrian Berry, partner of Deloitte's, commented: "We are delighted to have successfully agreed a sale of the Vermont and Martha's, which both safeguards a significant number of jobs in the local market as well as preserves an iconic city centre landmark".
By Neil Gerrard
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