He commented: “This is a well-located, recently rebranded city centre hotel only a few minutes’ walk from Newcastle Central train station and it is operated by a well-known international brand.
“The investment is priced attractively and at the quoted price it is also substantially underpinned by its vacant possession value.
“Newcastle has almost 8,500 hotel rooms and has only experienced modest room supply growth in the last five years, with a very limited supply growth forecast for the next five, so this asset’s place and potential in the market is very secure.”
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If sold for £31.8m, Knight Frank claims that the purchaser can expect a running yield of around 8.5% this year, rising to 9.86% in 2028, and 11.05% in 2033.
Despite the sale, Leonardo Hotel’s will still operate the former Jury’s Inn on the Newcastle and Gateshead Quayside - which also underwent a refurbishment and rebranding last year.
