The Sea Hotel in South Shields on the market for £1.65million as estate agents seek new buyer after business goes into administration
It is not yet clear if there will be any redundancies, but the administrators at RSM UK said the team were consulting with staff.
The Sea Hotel, which was built in the 1930s, reopened in January 2020 just before the Covid pandemic, after new owners High Street Hospitality borrowed £1.15million from lender Assetz Capital to fund the purchase and refurbishment.
Now the site has been brought to the market by has been brought to market by commercial real estate firm Colliers, listing it as ‘a seaside hotel complex with 34-letting rooms, function suite, restaurant, bar, private car parking as well as three food and beverage outlets’.
The agents are inviting offers in the region of £1.65million for the ‘modern hotel located beside the Ocean Beach Pleasure Park overlooking Sandhaven Beach’.
Robert Smithson, associate director from Colliers added: “The Sea Hotel is in an ideal location on the beachfront and offers a wide range of revenue streams which cater not only to tourists and corporate clients but also the local residents.
“Its recent refurbishment and the enforced closures of the pandemic mean that the property is in a good condition and fully functional, able to make an immediate impressive turnover for a new owner with vision for the business.”
Colliers informs buyers how prior to the pandemic much of the hotel’s public space and letting rooms on the first floor underwent significant refurbishment.
The hotel includes the Maritime Restaurant with a capacity of 60 covers, as well as a Maritime Bar with seating for 45.
The Bramall Suite is a self-contained function room and is licensed to hold wedding ceremonies.
It has a capacity for 130 and includes its own bar servery and small service room.
Colliers states: “The hotel attracts a strong mix of clientele, including tourists, corporate guests as well as local custom for events and leisure activities.”
Accessible from the hotel and Sea Road is the sports-theme Bar 52, which also continues to operate.
The bar has capacity for 100 people and includes pool table, darts and several TV screens for featuring sports events.
In addition the hotel complex has three food and beverage units which are at present unoccupied: Buddha, styled as an oriental restaurant with its own kitchen, storage and toilet facilities; a fish and chip takeaway; as well as a waffle and ice cream kiosk.
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.
Mr Lockwood said: “As administrators, we are currently reviewing the company’s business to evaluate the options available to creditors and formulate proposals.”