Newcastle's Grey Street hotel goes on market after falling into administration

The 49-bedroom Grey Street hotel in Newcastle upon Tyne has been put up for sale after falling into administration, due to the tough economic climate.

Offers in the region of £3.75m are being sought by Colliers International for the freehold boutique business, including rental income from bar and restaurant operator the Living Room, which leases and operates the restaurant within the hotel.

Located within a Grade II listed Georgian property within the city centre, the hotel is continuing to operate and will honour all current bookings whilst being run by the administrators, BDO.

Graham Newton, BDO business restructuring partner said: "Unfortunately the economic climate and difficult trading conditions have adversely affected the hotel."

The hotel includes its own cellar bar and four meeting rooms for between two and 100 delegates.

Julian Troup & Peter Bean of Colliers International said: "Grey Street is a first rate city centre hotel business with substantial rental income in addition to its hotel income. We anticipate a great deal of interest from both operators and investors."

Grey Street was original opened as a hotel, following a £6m development, in 2004 by Niche Hotels, a company set up two years earlier by Alan and Alison Corlett and Simon Eccleston.

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By Janet Harmer

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