A grade II-listed hotel building is set to expand after its owners secured a bank refinancing deal.
Newcastle’s Jesmond Dene House, has completed the deal with Santander Corporate & Commercial.
The exact terms have not been disclosed, but the multi-million-pound loan over the next five years will allow the hotel and restaurant to develop with plans to add a luxury spa.
Managing director Peter Candler said the move was a big vote of confidence for the hotel, particularly when banks are cautious about lending.
“We are delighted that Santander has provided the business with substantial committed funding at a time when lending to SMEs is at historically low levels,” he said.
“This confirms the progress that we have made since opening and the credibility of our plans.”
The 19th Century mansion house was built in 1822 by John Dobson for a doctor called Thomas Emerson Headlam, who was later to become mayor of Newcastle.
Lord Armstrong then bought the property in the 1850s and developed the neighbouring Jesmond Dene valley into a park and garden.
Armstrong sold the house to his business partner Andrew Noble in 19871 and in 1883 donated the adjoining land to the city of Newcastle.
Following the death of Noble's widow in 1929, the house was put to various uses including a college, a civil defence base, a seminary and a residential school before becoming a hotel in 2005.
Since then, the 40-room site has consistently increased profits with last year their most successful to date.
This has been achieved, Mr Candler said, by focusing on customers and investing in staff training.
The hotel won AA Hotel of the Year in 2008-09 and is also in TripAdvisor’s Top 25 UK hotels for 2013.
The hotel hopes to build on its success by converting the adjacent former stable block to a luxury spa.
Plans will be submitted to Newcastle City Council in the next few weeks.
Stephen Carmichael, from Santander, added: “Jesmond Dene House represents an excellent opportunity to invest in a high-quality business in the North East. We have been impressed by the continual improvements in trading performance and quality of service.”