A trio of North East business advisory firms have played an instrumental part in a deal to bring The Vermont Hotel Newcastle out of administration.
Banking, legal and financial advisers from Ward Hadaway, Santander and Sintons were all involved in the transaction, which saw Gainford Hotels Ltd buy the four-star hotel and Martha’s Bar and Courtyard from administrators Deloitte.
The move, which was financed by Santander Corporate Banking, will secure 70 jobs and help to create a further 20.
Gainford Hotels Ltd is a new venture, established by Susan and Mohammed Khaliq, who operate 12 care homes across the region as part of Gainford Care Homes.
Susan Khaliq said: “We are excited about commencing on this new stage of our business journey, following the deal with Santander.
“The Vermont Hotel is a fantastic building and we are looking forward to restoring its former glory and making it a key destination for visitors to Newcastle.
Angela Chau, Relationship Director at Santander Corporate Banking, said: “Working with such a strong management team gives me every confidence that they will be able to bring the Vermont back to its former splendor, ensuring that it will be a great city landmark in the years to come.
“We look forward to developing this relationship further and we wish Gainford every success with the new venture.”
Law firm Ward Hadaway advised Santander Corporate Banking on the finance package, with Imogen Holland, Partner in the Banking and Finance unit at Ward Hadaway, and Simon Errington, Partner in the Property department, leading the firm’s team advising on the deal.
Experts from Ward Hadaway’s specialist employment and restructuring teams also worked on the deal.
Imogen Holland said: “We are delighted to have played a part in bringing such a landmark hotel out of administration by advising Santander Corporate Bank.”
A team from Sintons led by partner Tim Gray advised Gainford Hotels on employment issues.
Tim said: “It has been a great privilege to be involved in this transaction on behalf of a family who are very valued clients of Sintons.
“It is particularly encouraging to see one of the city’s most prestigious buildings in such safe hands.”
Formerly the headquarters of Northumberland County Council, the Vermont Hotel opened in 1993.
In 1997, it became Newcastle’s first establishment to be awarded three rosettes in the AA Rosette Award scheme.