Delay-hit hotel opens its doors to 200 new jobs

May 12 2008 by Andrew Mernin, The Journal

UP to 200 new jobs are expected to be created this year as a major hotel development finally opens its doors.

The four-star Radisson SAS hotel in Durham, which will house 209 guest rooms and have the capacity to cater for up to 600 delegates, will open on November 1 – three years later than originally planned.

Plans for a £31m hotel development at Durham’s Riverside North West area were first announced by Closegate Hotel Developments in 2002.

The project was expected to be completed by 2005 but was hit by delays which saw £4m being added on to the estimated cost of the development.

When up and running the hotel is expected to give a huge boost to the region’s reputation as a corporate and tourist hospitality centre.

The site, which incorporates a banqueting suite alongside 10 meeting rooms, was developed by Sir Robert McAlpine on land formerly occupied by British Gas and Northern Electric.

Nikki Banner, director of sales at the hotel, said: “This is a very exciting time for everyone at the hotel. Many of our guest will be business visitors attending meetings and events in the hotel or using it as an ideal base when spending time in the region.”

General manager Deborah Haines, said: “Over the next few months we will be building the team that will operate the new Radisson SAS.

“The people of North East England have a deserved reputation for being friendly and hospitable so I’m confident that we will find many of our staff here in the region. In turn the hotel can provide them with genuine career opportunities in a global organisation.”

Radisson SAS is one of a number of global hotel brands to focus on the North East market in recent years.

Crown Plaza is currently planning to develop a 250-bed hotel on Tyneside while Hilton – which already occupies a site in Gateshead – could open a 100-bed hotel in Darlington as part of Darlington Football Club’s expansion plans.

TIMELINE: The Radisson SAS Durham

Feb 2002: New four-star hotel to help boost city

A NEW £30m four-star hotel is set to help revitalise Durham city centre. The SAS Radisson Hotel – with around 190 beds – will be built on a site formerly occupied by British Gas and Northern Electric at Riverside North West, it was announced yesterday. Closegate Hotel Developments Ltd, based in Newcastle, have acquired the land and appointed Sir Robert McAlpine to build the hotel. Demolition work will begin next month and building will begin in June. A new silver footbridge which is being built as part of Durham City’s £30m millennium project, will link the entrance to the hotel with the opposite side of the river bank

June 2003: Closegate to open four-star hotel in Durham

WORK will start soon on a new 209-bedroom, four-star hotel for Durham City. Closegate Hotel Developments is behind the venture, on which Sir Robert McAlpine Ltd will start work in August. The Radisson SAS Hotel will have a health and leisure club as well as conference and banqueting rooms.

Feb 2004: Radisson checks in to historic riverside

WORK is about to start on a £31m luxury hotel expected to breathe new life into a derelict site in the heart of Durham. Builders will move onto the riverside site this month as demolition and land decontamination work of the former gas works at Framwellgate are completed. The 209-bedroom, four-star Radisson SAS Hotel is being created by Newcastle-based Closegate Hotel Developments Ltd. It will see main contractor, Sir Robert McAlpine Ltd, shortly on site with project management by Hall & Partners.

Oct 2005: Delay checks in a £4m bill for Durham's luxury hotel

A LUXURY hotel planned for the heart of Durham has racked up an additional £4m in costs after an 18-month delay caused by funding difficulties. Work is due to begin next month on the 209-bedroom four-star Radisson SAS hotel on the banks of the River Wear but will cost the consortium funding the development £35m, instead of the £31m originally envisaged. This is because of rising labour and steel costs during the wait for funding arrangements to be finalised.