Newcastle city centre’s Leonardo Hotel put up for sale from more than £31million

The Leonardo Hotel, on Scotswood Road in Newcastle city centre, has been put up for sale for offers over £31.8million.

Knight Frank has been appointed to sell the 274-bedroom hotel on behalf of a UK investment fund.

The venue was formerly a Jury’s Inn, before it was refurbished and rebranded in 2022 to become one of 52 Leonardo Hotels across the UK and Ireland.

Charlie Fletcher, parnter at Knight Frank, is expecting interest in the city centre hotel to be high.

He commented: “This is a well-located, recently rebranded city centre hotel only a few minutes’ walk from Newcastle Central train station and it is operated by a well-known international brand.

“The investment is priced attractively and at the quoted price it is also substantially underpinned by its vacant possession value.

“Newcastle has almost 8,500 hotel rooms and has only experienced modest room supply growth in the last five years, with a very limited supply growth forecast for the next five, so this asset’s place and potential in the market is very secure.”

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If sold for £31.8m, Knight Frank claims that the purchaser can expect a running yield of around 8.5% this year, rising to 9.86% in 2028, and 11.05% in 2033.

Despite the sale, Leonardo Hotel’s will still operate the former Jury’s Inn on the Newcastle and Gateshead Quayside - which also underwent a refurbishment and rebranding last year.