The hotel was purchased by Newcastle based property developer Saggar Leisure Ltd and is to be the company’s first time entering the hospitality market.

Major work could be on the horizon in the heart of Jesmond for The Caledonian Hotel following its successful sale in early October. The 89-room hotel, which is found on Osborne Road, is also home to The Phoenix bar, a favourite among Jesmond based students, which regularly plays host to events and ‘themed nights. 

The company’s director, Rajeev Saggar, was approached for comment on this story, but declined to comment. However, in a statement released upon completion of the sale he said: “we are so happy with the acquisition of The Caledonian Hotel and are excited about what the future may bring.  

“Our plans include a £2 million investment over the coming years, as well as creating an even better experience for our guests” he added.  

In his statement Saggar also made his position on staffing clear, saying “It is important for us to retain the existing management and staff, as their experience is invaluable to us”.  

The hotel was previously owned by Peel Hotels. However, with the news that the company’s Chairman Robert Peel was planning to retire the chain, the firm listed four of their luxury establishments to be sold through the business brokers Christie & Co. 

The purchase price has not been disclosed. 

The Caledonian Hotel has already seen large scale investment in the last few years following a major fire in 2019.  

Not much is known of what the planned investment will entail for the hotel, when asked for his thoughts on the sale and plans for the hotel Councillor Peter Allen said “I have very little information on this other than the announcement in the trade press of the sale and propertied £2 million investment.   

Jesmond Lib Dem councilor Philip Browne was also contacted to comment, but due to his position within the council’s planning committee, was unable to make any comment as it could affect future planning submissions  

Whilst this marks an exciting new chapter for the hotel, the logistics around the investment also remain a mystery.

Megan Scott, who lives only 10 minutes from the hotel, visits The Phoenix bar weekly with her university society. She told JesmondLocal: “We come here every week for a social event. Everywhere else in Jesmond is packed on a Wednesday night and if this place closes for a long period of time while it’s being done up everyone in here will have to find somewhere else to go.”