The Leonardo Hotel at St James Gate in Newcastle city centre has been put up for sale with a price tag of £31.8m-plus.
A UK investment fund has appointed Knight Frank to sell the 274-bed upper-midscale hotel, which is let to Leonardo Hotel Management (UK) for the next 14.4 years and has a passing rent of £2,888,054 per annum. The hotel, which was formerly a Jury’s Inn, was refurbished and rebranded the Leonardo in 2022.
Charlie Fletcher, partner at Knight Frank, said he expected interest to be strong. “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,” he added.
Dickon Wood, capital markets partner at Knight Frank in Newcastle, said: “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.”
