The transaction – which was made on behalf of St James’s Place UK PLC – comprises the acquisition of the Travelodge Quayside hotel and the forward funding of a Melia hotel development.

The Melia development is due for completion in the summer of 2020 and will comprise a modern purpose-built hotel with 161 rooms across seven floors, and will contain a restaurant, bar, fitness suite and conference facilities.

•   Orchard Street acquires industrial estate for £19.34m
•   Purpose-built care home acquired
•   OakNorth provides funding for new Trafalgar Square hotel

The Travelodge Quayside hotel opened in November 2017 and comprises 120-rooms across five floors, a restaurant and bar.

Harry Buxton, acquisitions manager at Orchard Street, said Newcastle’s appeal as a business and tourist destination continued to strengthen.

“These acquisitions provide a strong foothold in Newcastle’s hotel market and, with the hotels benefiting from high-quality covenants and long lease terms with minimum rental uplifts, the assets will provide stable income returns for our client.”