Work set to start on new £16million four-star hotel in Sunderland's Keel Square

Cairn Group is behind the new development and say work is to begin on the new £16million hotel in the first quarter of 2018.

The keenly-awaited hotel is set to feature 120 rooms over five floors and aims to bring investment to the area as well as creating 130 new jobs.

It will also comprise ground-floor commercial units with opportunities for food and beverage outlets, providing letting opportunities for both national operators as well as local businesses.

The update was given by Sunderland City Council’s Deputy Leader, Coun Harry Trueman, during a question-time session at a full council meeting held at the Civic Centre.

Coun Trueman was asked by Coun Michael Dixon whether an update could be given as to the progress of the new hotel proposed to be built on High Street West, close to Keel Square in the city centre.

He said work on the development is set to start in 2018, now that it has been given the green light.

Coun Trueman told the meeting: “The proposed development of the 120-bed, four-star hotel by Cairn Hotel Group is funded, has planning permission and all legal documentation has been completed.

“The next milestone is for the developer to appoint his building contractor.

“We understand that this has been through a tender process and a start on site is scheduled for the first quarter 2018.”

Cairn Group has previously led several hotel regeneration projects investing in the region, including Holiday Inn Jesmond, Holiday Inn Scotch Corner, Mercure Darlington Kings Hotel, Cairn Hotel Newcastle, Rooms Inn Newcastle and DoubleTree by Hilton Newcastle International Airport.

A spokesman for Cairn Group said: “That date for work is to start is in quarter one in 2018 and it will cost £16million.

“There will be 120 rooms, five floors, and 130 jobs will be created.”