DTZ, part of UGL Services, a division of UGL Limited (ASX: UGL), has been instructed by Fraser Gray, Scott Gaillie and Anne O’Keefe of Zolfo Cooper, the Joint Administrators of Trinity Hotels (Newcastle) Limited, to sell the Staybridge Suites Hotel in Newcastle.
The modern, design-led 128 bedroom extended-stay hotel, located close to Newcastle Quayside and Newcastle and Northumbria universities, is only the second Staybridge Suites hotel to be developed in the UK. The purpose-built hotel offers a mix of studio and one-bedroom suites measuring between 30 sq m and 40 sq m with fully fitted kitchens, arranged over seven floors across two wings. Targeting business travelers, additional facilities include the Hub kitchen, Living Room, The Den, fitness room and 24/7 shop, the Pantry.
The hotel is owned via a 999 year lease from 2003 at nil annual rent and benefits from a 20 year Management Agreement with IHG.
Tony Hordon, Senior Director at DTZ commented: “The Staybridge Suites Hotel in Newcastle represents a strategic opportunity to acquire a fast developing new brand supported by one of the world’s best hotel management companies. The extended stay concept is gaining popularity with customers in the UK. Staybridge Suites Newcastle achieved 78% occupancy in 2011 in only its second full year’s trading, testament to a popular brand concept and a resilient local market. We anticipate strong interest from a wide range of hotel investors.”
The Staybridge Suites concept has been incredibly successful in North America, with IHG driving rapid integration of the brand into the UK and Europe, with a further six projects in the pipeline.