Assetz Capital transforms South Shields hotel with £1.15m investment
Marketplace lender Assetz Capital has provided a £1.15m loan for the purchase and refurbishment of South Shields-based Sea Hotel.
Overlooking South Marine Park and just 100 yards from the closest beach, The Sea Hotel boasts 34 fully refurbished en-suite bedrooms including a honeymoon suite, a Latin-American restaurant and cocktail bar “Loca Bar and Kitchen”, a vibrant American style sports bar “Bar 52”, and a multi-purpose events venue, the Bramhall Suite, ideal for weddings, conferences, entertainment and banquets.
The £1.15m refinancing loan from Assetz Capital comprised funds for the hotel’s recent £550k refurbishment which saw improvements across the property, including an overhaul of the bedrooms, reception areas and restaurant. This refurbishment has led to a 73% increase in turnover and has also seen a significant boost in wedding and event bookings.
This initiative is part of High Street Hospitality’s expansion plans to add a further 10 hotels within the next three years to its existing portfolio of four venues across the North-East of England.
Gary Forrest, chairman of the High Street Group, said: “The loan from Assetz Capital, who has been a valuable partner of the High Street Group, has been pivotal part in not only the refinance of an existing commercial mortgage, but also renovating the entire Sea Hotel. The work has allowed the hotel to trade at a higher level than before, benefiting the employees, the local community and tourists alike.
This loan follows a number of recent deals between Assetz Capital and the High Street Group, including the £4.67m development loan to build new residential houses and apartments at the luxurious Larbert House and Country Estate near Falkirk; a £1.25m loan to purchase and renovate North Yorkshire-based Parkmore Hotel; and a £172 000 loan to acquire the quality office space for High Street Developments, which is the Group’s construction arm, in County Durham.
Ian Craig, relationship director at Assetz Capital, said: “It is a pleasure to work with the High Street Group and witness how Assetz loans can be used to transform a dated building into one that is a thriving part of a local community. We look forward to building on this relationship and being a part of many more commercial property developments with which the group is planning to be involved in the future.”
The loan was brokered by Dale Shotton, funding director of High Street Developments.