Hotel 52 (Sea) Limited - case update

A hotel has been sold after rumours surfaced that it was going to be used to provide accommodation for people seeking asylum in the UK.

Hotel 52 (Sea) Limited, which operated a seaside hotel in South Shields, was placed into administration by creditor Assetz Capital in July 2022. Following their appointment as Joint Administrators, Lee Lockwood and Gareth Harris of RSM continued to trade the business while they searched for a buyer. They engaged property specialists Colliers to market the hotel and business for sale at an asking price of £1.65 million. A small number of redundancies were made, but most staff were retained to keep the hotel operational during the sale process.

This month, rumours began circulating on social media that the hotel had been sold, and that the new owner intended to lease it to the Home Office to provide accommodation for people seeking asylum in the UK. The Joint Administrators quickly dispelled those rumours, clarifying that the hotel was still on the market just over a week ago.

Now, almost 10 months after their appointment, the Joint Administrators have announced that the hotel has been sold to Resource Medical (UK) Ltd, a group that operates a number of hotels in Yorkshire. The new owner reportedly intends to make a significant investment in the hotel.

The hotel’s operation during the administration was financed in part by £75,000 in funding from Fresh Thinking Partners, which will be repaid.

The Joint Administrators' latest progress report can be found HERE. They have been assisted by JMW Solicitors (legal advice), Colliers (asset valuation and disposal), Sanderson Weatherall (asset valuation and marketing) and Marsh (insurance).