Budget hotel chain Travelodge has closed the doors on one of its North East properties after landlords The Crown Estate took the site back.
The Newcastle Silverlink Travelodge, based at the Silverlink retail park on North Tyneside, has ceased operating with immediate effect, but 21 of the 27-strong hotel team have all been transferred to other hotels in the Newcastle area.
The company, which employs 200 people in the North East, confirmed the remaining six staff members took voluntary redundancy.
The 126-room hotel was converted to the Travelodge brand back in 2008 as part of the company’s plans to expand its estate.
However, in 2012 the property was put up for sale by Christie & Co on behalf of Piccadilly Hotels, who were then leasing the building to Travelodge Hotels Limited.
At the time, the director of corporate hotels for Christie & Co expected a great deal of competitive interest given the strategic location of the hotel, and it was snapped up by The Crown Estate, which manages the sovereign’s properties and land.
A Travelodge spokesperson said: “We can confirm that Newcastle Silverlink Travelodge will close from 11th July 2014. This is because the landlord that owns the building has given Travelodge notice of their intention to use this site for another purpose.
“All prior bookings at this hotel have either been transferred to one of our five Newcastle hotels or the customer has been refunded as requested.
“We can also confirm that from our hotel team of 27 staff, 21 staff members have been transferred to another Travelodge hotel within the area, and six staff members have decided to take voluntary redundancy.
“Travelodge remains one of the biggest hotel chains in Newcastle and this year the company is investing over a million pounds into its Newcastle properties.
“This includes refurbishing our Newcastle Central and Newcastle Whitemare Pool Travelodge hotels in the company’s new contemporary brand look.
“Also, by September 2014, all beds in our five Newcastle hotels are being replaced with the new Travelodge Dreamer bed – a bespoke luxurious king size bed, predominately found in luxury hotels worldwide.”
It is not yet known what The Crown Estate plan for the Silverlink site.
A spokesman for The Crown Estate said: “At the moment we are considering options for the future of the site.”