A 37-storey tower that would become the North East’s tallest structure is being planned for Newcastle city centre.
Gainford Group – owners of a string of bars, hotels and restaurants in the city including the Vermont Hotel, Aveika, Livello and the County Hotel – added to their portfolio in 2018 with the acquisition of the former Premier Inn on New Bridge Street.
Initial plans for the site’s redevelopment were drawn up to include a full revamp of the hotel that aimed to breathe new life into a neglected part of the city.
But those plans have now been completely overhauled and a renewed vision is set to go before council planners that will include a huge, mixed-use skycraper combining housing, leisure and a hotel, standing higher than Newcastle’s current tallest building, the 26-storey Hadrian’s Tower.
The Chester-le-Street based family firm said it plans to invest £50 million into the scheme, its biggest to date, more than three years after completing the deal to purchase the 180-bed former Premier Inn hotel, which was sold off an asking price of at least £3.2m.
Director Imran Khaliq said: “It’s going to be the tallest structure in the North East.
“It’s too early to give too many details, but we have completely altered our original plans for the New Bridge Hotel and will be spending around £50m on creating a mixed use development there. It’s exciting times.”
The announcement comes as Gainford Group, which also has 12 care comes alongside its leisure portfolio, unveiled its accounts for 2020, in which it saw turnover fall from £35.9m in 2019 to £28.2m as it was impacted by several lockdowns and Covid-19 restrictions.
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Pre-tax profit fell from £4.3m to £3.6m, while operating profit fell from £4.9m to £4.1m.
In the accounts, the group said trade since reopening has been strong, and adding that it had used the lockdown period to invest in all key sites, mainly to increase outdoor space.
Bar Livello now has a two-storey extension, increasing capacity from 350 to 500, its rooftop terrace Above at The Vermont Hotel is attracting strong levels of bookings, and outdoor areas at The Hudson and Aveika have been improved.
In a report accompanying the accounts Mr Khaliq said: “Turnover from Gainford Hotels was significantly impacted this year with most sites closed or under Government restrictions for most of the year. The company used this enforced downtime as an opportunity to reinvest into all key sites and significantly enhanced the venues at The Vermont, The County, Aveika and Livello.
“As the venues have started to reopen since April 2021, early signs are the improvements will pay significant dividends because initial trade has been very strong. Significant trade is expected in the second half of 2021 when all sites can trade without restrictions. The redevelopment of the New Bridge Hotel has been postponed while we improve existing sites. We have submitted several schemes for the site and are awaiting approval from Newcastle City Council.”
Following publication of the accounts Mr Khaliq added: “We’ve not made anyone redundant throughout the pandemic and thanks to newly extended venues and our growing care division, we’ve actually grown, and now have around 2,700 employees across the group. We are also now recruiting for Crescendo, which will open in the space between The Vermont Hotel and Moot Hall, and we have big plans for the New Bridge site.
“Throughout lockdown we took the time to carry out the refurbishments across the portfolio so we’ve been ready to open, and we’re ready for the ‘new world’.”