New owners have checked into the Hilton Newcastle Gateshead after the four-star hotel was sold for more than £36m.
Aviva Investors has sold the hotel, set overlooking the River Tyne on the Gateshead side, to Universities Superannuation Scheme Limited (USS), the principal pension scheme provided by universities, higher education and other associated institutions for their employees.
The announcement comes after a short marketing process, with the building fetching more than the £36m guide price.
Aviva were represented by international real estate advisor Savills in the eight-figure deal, while USS was represented by Cuthbert White and DTZ.
The 254-bed hotel – the first Hilton International in the region – was built at a cost of around £30m in 2004 and Aviva Investors originally forward-funded the development.
Rob Stapleton, hotel transactions director at Savills, said: “Aviva Investors originally forward-funded the development of the hotel and, having completed its hold period business plan, took the opportunity presented by the recent strong recovery of the regional investment markets to realise its interest in the asset.
“We are delighted to have completed on this transaction and to have secured such a strong price for Aviva Investors after a short but highly competitive marketing process.”