Mon, 25 Jul 2022 | ADMINISTRATION
A buyer is being sought for The Sea Hotel in Sea Road, South Shields after it fell into administration. The hotel, which is located close to the seafront, underwent significant refurbishment prior to its reopening in 2020, just months before the onset of the COVID-19 pandemic.
The hotel has 34 fully refurbished en-suite rooms, one of which is a honeymoon suite. In addition, it also features the Loca Bar and Kitchen, a Latin-American-themed restaurant and cocktail bar which offers dance classes and live music and an American-themed sports bar named Bar 52. Other facilities include a coffee shop, fish and chip takeaway, a multi-purpose events space and the Bramhall Suite.
The Bramhall Suite is a popular venue for weddings, conferences, parties and other formal events. Before it was forced to close due to COVID-19, the refurbished hotel had seen a 70 per cent increase in turnover and an uptick in bookings for weddings and events.
The hotel was last acquired by High Street Hospitality, which took on a £1.15 million loan from Assetz Capital to help fund the acquisition and subsequent refurbishment. High Street Hospitality – which later changed its name to The One Collection Leisure Ltd – was part of the High Street Group of bars and restaurants in the North East. The High Street Group collapsed into administration in February 2022.
RSM UK Restructuring Advisory LLP’s Lee Lockwood and Gareth Harris were appointed as joint administrators to Hotel 52 (Sea) Ltd, which operates The Sea Hotel, on July 18. The administrators have said that the hotel will remain open and all future bookings and events will be honoured while the hotel is marketed for sale.
RSM UK Partner and joint administrator Lee Lockwood said: "As administrators, we are currently reviewing the company’s business to evaluate the options available to creditors and formulate proposals.”
Lockwood added: "To provide the employees and other stakeholders with the best possible outcome, we intend to market the hotel with a view to finding a buyer as a going concern. Full marketing details will be released in due course.”
Read more about M&A opportunities in the UK hotel sector.
One of the best ways to find properties below market price is to look at recent administrations.
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