Newcastle buys Stephenson Quarter Crowne Plaza
The 250-bedroom hotel has been purchased out of administration by Crossco (1467), a company owned by the city council.
Alison Grant and Sarah O’Toole of PwC were appointed as joint administrators of Stephenson Hotel Limited, the owner and operator of The Crowne Plaza Newcastle – Stephenson Quarter hotel, part of the Intercontinental Hotel Group, on 28 March.
The hotel will continue to trade as normal, with bookings unaffected.
Alison Grant, director at PwC UK said: “We’re pleased to have been able to secure a deal with Newcastle City Council, which represented the best option in generating returns for creditors and ensuring the continuity of the hotel’s operations.
“The deal safeguards the jobs of all employees and ensures that the Crowne Plaza Newcastle – Stephenson Quarter continues to serve the local economy and community.
“The company’s financial stability had been affected by various loan facilities it held with the council.
“In terms of day-to-day trading, the hotel has always been a highly successful business and this effort is focused on resolving the debt position to ensure it can continue to thrive.”
Mark Nicholson, Newcastle City Council’s chief finance officer, added: “The parties have worked together to try to reach a solvent solution for Stephenson Hotel Limited, the owner of the Crowne Plaza Newcastle – Stephenson Quarter, however, the level of debt involved was too high for this to be possible.
“Following independent advice, I am pleased that we have now managed to reach an agreement to acquire the hotel from Stephenson Hotel Limited.”
