Historic Grey Street Hotel acquired by Malhotra Group

A Newcastle boutique hotel has been bought out of administration by the Malthotra Group who plan to invest a seven-figure sum in the venue.

Grey Street Hotel in the city centre was forced to call in administrators in November 2012 after battling falling guest numbers for some time.

The deal with the Malhotra Group was overseen by law firm Sintons and includes the purchase of the entire Grade II listed building, part of which is leased by The Living Room bar and restaurant.

The Living Room, which is part of a national chain of venues, is a separate business and is unaffected by the administration or sale.

After falling into administration the venue continued to trade, and while no redundancies have been made, no investment has been made in the venue.

The Malhotra Group, now plan to renovate the entire hotel, and have pledged to spend several million pounds to bring the iconic building back to its former glory and to create a top class venue in Newcastle City Centre.

The company owns numerous leisure venues in Newcastle, including the hugely popular Louis’ Restaurant, Osborne’s and Scalini’s in Jesmond as well as The Three Mile Inn in Gosforth.

They are confident that the 50-bed hotel - which is also well-known as a wedding and conference venue, and which includes a popular cellar bar - will compliment their plans for development of another five star hotel and leisure complex elsewhere on Grey Street.

That project, which has previously been announced, will break ground in the near future and plans for the renovation of Grey Street Hotel will be announced following consultation with City Planners.

Meenu Malhotra, from the Malhotra Group, said: “We are delighted to have acquired the hotel.

“It is an ideal addition to our already flourishing hospitality and leisure division. We are glad that we have been able to take on such an iconic building and we look forward to putting our stamp on it.“

Alok Loomba, Partner in the Real Estate team, handled the property aspects of the deal and Christopher Welch, Partner, and Adrian Dye, Associate, in the Company and Commercial team, dealt with the corporate aspects.

Christopher Welch said: “The Grey Street Hotel is rightly regarded as one of Newcastle’s premium venues and we are very pleased to be able to play a role in securing its future.

“It represents a good strategic acquisition by The Malhotra Group and compliments well what is already a large and varied portfolio of venues.

“We are confident that under its new owners, The Grey Street Hotel will build upon its reputation as somewhere that people from both within the region and beyond want to visit.”

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