A North East hotel has been put up for sale by administrators with a £1.65m price tag.
RSM UK Restructuring Advisory LLP’s Lee Lockwood and Gareth Harris, were appointed joint administrators of Hotel 52 (Sea) Ltd, which trades as The Sea Hotel in South Shields, on July 18, triggering a review process to evaluate the options available to creditors. The hotel is remaining open during the process, but around 95 jobs hang in the balance as the administrators say it is unclear whether there will be redundancies.
Now new owners are being sought for the hotel after it was put on the market through property agents Colliers, with a £1.65m price tag. The complex has 34-letting rooms, a function suite, restaurant, bar, private car parking and three food and drink outlets on site.
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It recently underwent a £750,000 refurbishment under owners High Street Hospitality - later renamed The One Collection Leisure Ltd - after it snapped up the Best Western-run building in a £1m deal.
Marketing materials for the hotel outline how the property includes the Maritime restaurant with a capacity of 60 covers, as well as a Maritime bar with seating for 45. The Bramall Suite is a self-contained function room and is licensed to hold wedding ceremonies, with capacity for 130 people with its own bar servery and small service room.
Property agents Colliers said the hotel attracts a strong mix of clientele, including tourists, corporate guests and locals for events and leisure activities.
RSM UK partner and joint administrator Mr Lockwood said: “As administrators, we are currently reviewing the company’s business to evaluate the options available to creditors and formulate proposals.”
The building includes modern sports-theme Bar 52 which also continues to operate. The bar has capacity for 100 people and includes pool table, darts and several TV screens for featuring sports events. The complex also has three food and beverage units which are currently unoccupied - Buddha, an oriental restaurant with a kitchen, storage and toilet facilities; a fish and chip takeaway, and a waffle and ice cream kiosk.
Robert Smithson, associate director from Colliers added: “The Sea Hotel is in an ideal location on the beach front and offers a wide range of revenue streams which cater not only to tourists and corporate clients but also the local residents. Its recent refurbishment and the enforced closures of the pandemic mean that the property is in a good condition and fully functional, able to make an immediate impressive turnover for a new owner with vision for the business.”
The One Collection Leisure Ltd had been part of the failed Newcastle-based High Street Group of companies that collapsed into administration owing £211m.
