A Tyneside property developer has acquired The Caledonian hotel in Newcastle and unveiled a £2m investment plan for the four-star, 89-bedroom Jesmond site.
Specialist business property adviser Christie & Co announced the sale of the hotel on behalf of Peel Hotels following a sales process led by Mark Worley. The Caledonian has been sold to Rajeev 'Sunny' Saggar of Saggar Leisure Ltd.
Local owners plan major upgrade
Mr Saggar said: “We are so happy with the acquisition of the Caledonian Hotel and are excited about what the future may bring. As local owners, we see a good opportunity to further invest in the hotel whilst also building on the strong foundations already in place. It is important for us to retain the existing management and staff, as their experience is invaluable to us.”
“Our plans include a £2 million investment over the coming years, as well as creating an even better experience for our guests. We consider community relations to be highly important to us, and we aim to contribute positively to Jesmond and the wider Newcastle area.”
He added: “We would like to thank Handlesbanken for their support with the funding, Mincoffs for their work on the legal side of the acquisition, and Paul Carolyn of Shandwick Properties for acting on our behalf throughout the acquisition.”
Hotel's appeal and sale details
Mark Worley, Director of Hotels at Christie & Co, said: “Jesmond is perhaps the most sought-after suburb on Tyneside and the size, condition and location of the Caledonian, as well as the excellent trade levels, makes it highly appealing to buyers.”
“We are delighted to have sold the hotel to Sunny, a client I have worked with very successfully in the past, and we wish him all the best for this venture, and we know the business is in very good hands.”
The Caledonian Hotel was sold for an undisclosed price. Robert Peel, Director of Peel Hotels Limited, said the completion of the sale “marks progress with our divestment strategy”.
History of investment after fire
The hotel has undergone substantial investment over the years after being damaged in a huge fire. In October 2019, a fire tore through the Osborne Road hotel. Four crews were initially dispatched to the scene where they were met with giant flames and plumes of black smoke rising from the building.
