Recently formed hotel group Niche Hotels has bought its third property in Newcastle upon Tyne.
The group, owned and run by Alan Corlett, has bought a 19th-century Grade II-listed property in the Grainger Town area of the city centre. The building has stood in disrepair for more than 20 years and is viewed by locals as one of Newcastle's biggest eyesores.
But now Niche and restaurant and bar company Living Ventures have teamed up to open a 49-bedroom boutique hotel at the site.
The hotel, which will cost more than £6m to develop, will also feature a conference room with space for 100 people and a 6,000sq ft bar and restaurant which will be operated under Living Ventures' Living Room brand.
The Living Room will feature a 120-seat restaurant and 250-capacity bar and will be situated on the first floor and basement of the hotel.
Corlett said that he had singled out Newcastle as a primary target destination when he created Niche Hotels and was thrilled to have finally concluded a deal. "This is an important acquisition and it demonstrates our continuing strategy in the expansion of our business," he said.
The hotel is scheduled to open in November.
Funding for the purchase was provided by the Bank of Scotland and Mark Simpson, a private investor who also jointly funded Niche's first hotel, the Queensgate in South Kensington, London.
Niche also owns Wyck Hill House in Stow-on-the-Wold, Gloucestershire.