Jobs at risk as hotel goes on sale for £1.65m
A SEASIDE hotel has been put on the market days after going into administration, putting almost 100 jobs in jeopardy.
The Sea Hotel in South Shields went into administration on July 18 but it remains open and it is hoped all future bookings and events can be honoured while it is marketed for sale.
RSM UK Restructuring Advisory LLP’S Lee Lockwood and Gareth Harris, who were appointed as joint administrators to Hotel 52 (Sea) Ltd, which operates The Sea Hotel, have now put the hotel on the market 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.
Prior to the pandemic much of the hotel’s public space and letting rooms on the first floor underwent a £750,000 refurbishment under owners High Street Hospitality –
later renamed The One Collection Leisure Ltd – four years after it snapped up the Best Western-run building in a £1m deal.
Marketing materials for the hotel detail how it 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 licensed to hold wedding ceremonies. It has a capacity for 130 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 that 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.
It owns a series of bars and restaurants across the North East.