New £16million five-storey hotel plan for Sunderland city centre could create 130 jobs

An artist's impression of how the new hotel overlooking Keel Square will look.

The £16million project aims to open a new Holiday Inn hotel on land overlooking Keel Square – and formal proposals have now been lodged with Sunderland City Council.

Developer Cairn Group, which has led several hotel development projects across the North East, submitted the application on Wednesday, July 3.

If approved, the five-floor hotel would feature 120 rooms with commercial units on the ground floor. It is estimated that 130 jobs would be created by the venture.

The new hotel will overlook Keel Square.

Aneil Handa, a director at Cairn Group, said: “We’re delighted to be moving forward with this hotel development right in the centre of a city that is transforming, thanks to significant investment from both the public and private sector.

“We have been working closely with the team at the council to progress with plans and we’re pleased to be in a position to move forward with a planning application.

“There is a growing sense of momentum in Sunderland and we’re looking forward to being part of that.”

Both local businesses and national operators would be welcome to inquire about space in the hotel’s ground-floor commercial space.

The plan follows an announcement that work will start later this year on a new city-hall style building, which will become the city council’s base, as well as home to public sector partners.

They will work together to provide more person-centric support to families across Wearside, just a stone’s throw away from the prospective hotel site.

Council leader Graeme Miller has welcomed this ‘positive news’ for the city.

He said: “There can be no doubt about the level of ambition that exists in Sunderland, as we move forward with yet-more positive plans for the city centre.

“And that’s attracting the attention of developers who want to be part of the bright future Sunderland is, undoubtedly, securing.

“Hotel developments represent much more than just the financial investment being made – they’re a vote of confidence in the city’s visitor economy – and we’re pleased that Cairn Group can see the vibrancy that is growing in Sunderland.

“We are a city to watch – a place that is transforming at a rate not seen for decades, and we look forward to seeing this new building added to the fantastic new spaces emerging from the ground in the city.”