New Hilton hotel for Newcastle Airport

Jun 18 2009 by Peter McCusker, The Journal

THE Hilton Group is set to be unveiled as the operator of the new £30m hotel which is nearing completion at Newcastle International Airport.

The 187-bedroom hotel had been due to open this month but a succession of problems has seen the original operator, the Ramada Group, pull out and the builders go into administration.

It will not now open until late summer and The Journal understands the Hilton Group will be unveiled as the operator in the next few weeks. A Hilton spokesperson said: “We are keen to develop our presence in Newcastle, particularly given the success of our Hilton Newcastle Gateshead property.

“As we look to introduce our family of hotel brands in to the area we are currently in talks regarding several sites in and around the city and hope to make an announcement shortly, but as yet nothing has been confirmed.”

Newcastle International Airport was not prepared to comment on the operator and said it expected to make a formal announcement within weeks.

Work started on the hotel last year but earlier this year the two companies who had secured the deal to build the hotel – Rostock Investments Limited and St James Capital Hotels – went into administration.

The two British Virgin Islands-registered businesses, which were linked to flamboyant former Newcastle bar boss Joe Robertson, were placed into the hands of administrators Zolfo Cooper after the bank withdrew their funding.

At the time of the administration Zolfo Cooper said it would complete the work on the hotel and this is now 99% ready.

The Hilton group established its first presence in the region in Gateshead in 2003 with a 254-bedroom hotel.

Its family of hotels encompasses nine brands from four-star city centre hotels to mid-price, extended stay and vacation ownership hotels.

Hilton has also been lined up as the operator of a planned 149-bedroom hotel at Durham County Cricket Club’s Chester-le-Street home. The hotel would form part of a £45m redevelopment of the Riverside ground, including a new landmark Gateway building. The project, which would establish the stadium as a leading Test match venue, won planning permission from councillors in April.

Geoff Hodgson, chairman of North East Tourism Advisory at One North East, said the move at Newcastle Airport would be fantastic news for the region.

He said: “We’re delighted to hear it’s likely the Hilton are going to acquire the property at Newcastle Airport.

“This can only be good news for the region as it demonstrates further private sector investment into the hospitality industry.

“An international chain wanting to expand in the region can only give encouragement to others. It will have a significant effect in increasing the quality of bed stock and also providing a number of jobs with international programmes attached.”

We are keen to develop our presence in Newcastle, particularly given the success of our Hilton Newcastle Gateshead property