27/1/2009 Leading Canadian hotel group joins Downing Plaza master plan

Canada’s largest privately-owned hotel group is to open its first overseas venture at the flagship Downing Plaza scheme in Newcastle city centre.

Developer Downing has completed a deal with Vancouver-based Northland Properties that will see a four-star hotel, under its premium Sandman Signature brand, located at the mixed-use scheme.

Northland has acquired the 65,000 sq ft former Scottish and Newcastle Brewery office head quarters from Downing and is now planning a comprehensive refurbishment to transform it into the 169 room hotel.

Paul Houghton, director at Downing, said: “The successful conclusion of these negotiations marks another significant achievement for the Downing Plaza master plan. Northland has exacting standards for its Sandman brand and its decision to locate the first overseas hotel at Downing Plaza is a major endorsement for the scheme and Newcastle as a whole.”

Founded in 1967, Northland Properties’ Sandman Hotel Group is the fastest-growing privately-owned hospitality group in Canada. The business operates 35 properties across Canada and employs more than 6,000 people across its network of sister hotel and restaurant companies. The Sandman Hotel Group currently has 7 new hotel projects under construction, representing an additional 1500 rooms to its portfolio.

“Our Company is excited to be bringing the Sandman Signature brand to Newcastle, and to the UK. We are in the unique position to be expanding, and Gallowgate provides us with an ideal site in a viable marketplace.” Remarks Mitch Gaglardi, Director of Sandman Hotel Group UK

Neil Osborne, Director of storeys:ssp, the sole letting agents for the scheme said: “This is tremendous news for the city, and the Downing Plaza development. It reinforces the view that the Gallowgate area has now established itself as the prime commercial development area of the city.
“We received a strong level of interest in this property and this sale shows that Newcastle is able to buck the national trend in these difficult times”.

The £200 million Downing Plaza scheme represented the largest planning application to be granted in Newcastle since 1973. In February 2008 the scheme achieved Newcastle’s largest ever commercial pre-let when Newcastle University Business School (NUBS) took 100,000 sq ft.

Downing Plaza’s six landmark steel and glass-clad buildings have been designed by Ian Simpson Architects and will feature 200,000 sq ft of offices, a further 283 bed 4 star hotel, a 462-bed student village and extensive retail space.

Liverpool-based property group Downing is a major force in the building industry and property markets across the Midlands, North and North West of England.