Newcastle based CHG, which owns 18 hotels in the UK, plans to operate the 179-bedroom hotel under franchise from a major international hotel brand. It will be the group's fifth hotel in Newcastle, making it the city's largest hotel owner and operator.
CHG currently operates most of its hotels independently, apart from two Holiday Inn properties.
The Europe Arab Bank has provided the finance for the 99-year lease on the hotel, which has 11 conference rooms and extensive food and beverage facilities. CHG's experience of running independent restaurants and bars, including the Bar Berlise, Spy Bar and Fratello's Bar & Restaurant in Jesmond, was a key reason for CHG securing the deal.
CHG director Aran Handa said: "As a family business based in Newcastle we have watched this very well-located hotel coming out of the ground for the last few years. We are now absolutely delighted to acquire it, and look forward to finishing it off and finally getting it open to the public."
The developer of Newcastle Airport Hotel, Rostock Investments. was placed into administrative receivership in January 2009.
By Janet Harmer
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