Proposals for a new hotel, which overlooks Keel Square in Sunderland city centre have moved forward with a deal agreed for the sale of the land for the development. The council has agreed the sale of the land to developer Cairn Group.
Plans for the 120-bed Holiday Inn Hotel were approved in the latter part of 2019. Final agreements have now been signed with the council, meaning that work can now commence on the four-storey development.
The hotel is set to create 130 jobs when it opens its doors next year.
Cairn Group’s Richard Warren said: “We’re delighted to be able to push forward with the development of an exciting new addition to the city’s leisure and hospitality portfolio. We are thrilled to be part of regenerating Sunderland and remain committed to investing within the region.”
Councillor Graeme Miller, leader of Sunderland City Council, added: “This has been a challenging time for the city, as it has for the UK at large, so it is good to be able to announce a really positive development for Sunderland, and one that demonstrates that we are ready to emerge from this crisis on the front foot and deliver the dynamic city centre our residents want and deserve.”
Cairn Group’s £18m Holiday Inn development is being part-funded by Canada Life, a commitment secured by Avison Young, and will create additional accommodation to support an increase in the number of visitors to the city.
Simon Beanland, principal and head of investment at Avison Young, Newcastle, said: “This funding commitment by Canada life is another tremendous vote of confidence for the City of Sunderland, following hard on the heels of substantial funding commitments by Legal & General elsewhere in the city.”
Building work will get underway over the summer, and it is expected that the hotel will complete by the end of 2021. The hotel will also comprise ground-floor commercial units.