A budget city hotel has reported excellent year-on-year growth on the eve of the second anniversary of its opening.
The hotel’s achievements are good news for Newcastle’s hospitality market which commercial property experts claim is showing signs of long-term decline and established operators argue is in danger of being overwhelmed by over-supply.
The hotel opened in January 2012 as a modern reinvention of a classic British railway hotel less than two minutes’ walk from Newcastle Central Station. It was built on the site of a former derelict Parcel Works across two original railway arches bordering the northbound East Coast mainline.
The 98-bedroom hotel on Westgate Road, Newcastle, has reported a strong second year with 13% increase in occupancy, 12% increase in revenue and 13% growth in profits year on year.
According to Sleeperz Newcastle Ltd’s financial statements for the year ending February 28, 2013, around 26 new staff were employed, eight more than the previous year.
The business turned over £1.8m for January to December 2013 compared to £1.6m in 2012.
In its first year trading, the hotel won a hat-trick of industry awards, including a RIBA (Royal Institute of British Architects) award for Architectural Excellence and welcomed more than 35,000 guests.
It has followed its landmark first year with an even stronger second 12 months with around 40,000 guests.
David Myers, chief executive of Sleeperz Hotels, said: “There’s no doubting that hospitality is a tough market in NewcastleGateshead and whilst the city continues to attract established hotel brands and new operators, the overall Newcastle hotel market performance is in long-term decline.
“Sleeperz Hotel Newcastle has been very successful and that’s mainly due to our unrivalled location but also our distinctive brand identity.
“Sleeperz is different to many of its competitors, we offer stylish contemporary city living in a prime location at budget prices.
“We also deliver great customer service and are Newcastle’s highest ranking city centre budget hotel on TripAdvisor and Booking.com, making us attractive to both leisure and business travellers.’’