Grey Street Development


  • Feedback received to date has been very positive.  The scheme is now progressing to a live pre-planning application. This is due to be concluded by May/ June 2019
  • Various surveys have been carried out to support the application
  • Appointments have been confirmed for building services and structural consultants
  • Currently works are onsite with the removal of furnishings such as carpets and loose fittings etc.

£35m hotel with rooftop pool and nightclub planned for Newcastle’s Grey Street

The Malhotra Group is the brains behind the £35m scheme to create the 120-bedroom four star hotel.

A £35m plan to create a luxury hotel complex complete with a rooftop swimming pool, nightclub, restaurants and retail outlets has been unveiled for Newcastle city centre.

Leisure operator Malhotra Group is behind the multimillion-pound scheme which will transform a number of buildings in the Grainger Town area, reinvigorating a huge property plot around a focal 120-bedroom hotel.

The Newcastle company, which also operates care and property divisions, has spent a number of years acquiring a number of buildings around Grey Street, with a view to creating a landmark hotel for the city centre.

Plans were first mooted by the group seven years ago, when a spend of up to £15m was set to be ploughed into creating a 55-bed hotel on Grey Street.

That scheme has now revised and goes far beyond original ambitions, encompassing nine existing buildings, seven of which are Grade II listed.

The site of the development, which is being overseen by designers Space Architects, will stretch from Grey Street down to its junction with Mosley Street and across to the lower part of Cloth Market.

The scheme includes the famous Balmbras music hall at the Cloth Market, with the aim of restoring it to its original identity, along with a plan for Drury Lane – the site of the original Theatre Royal – which will be home to a number of retail outlets within a glass covered cobbled street.

The Malhotra Group said it sees the scheme as being the jewel in the crown of its impressive property portfolio and believe it will become a visitor attraction in its own right, as well as creating a significant number of jobs while boosting the local economy.

The development will also help strengthen the company’s foothold on Grey Street, where it operates the boutique Grey Street Hotel which recently underwent a £1.2m refurbishment.

Full plans for the scheme will be presented to Newcastle City Council by the end of the year, with a view to starting the refurbishment in spring 2018 subject to planning permission being granted.

If approved, the leisure complex will be open by the end of 2020, with a design that would be sympathetic and in keeping with Grey Street’s historic facade.

“This is a huge and impressive development that should bring more visitors in the city centre,” said Meenu Malhotra, group chairman of Malhotra Group.

“As owners of the Grey Street Hotel we are well aware of the importance of ensuring that any development in this area celebrates its history and we believe this new hotel will be a huge asset not just to Grey Street but to the city as a whole.

“It’s a very ambitious scheme, and we will work very closely the city planners and conservations department in respecting all aspects of the historic architecture to ensure these landmark buildings are brought back to their former glory.”

Coun Ged Bell, cabinet member for inclusive growth at Newcastle City Council, said: “We’re delighted the Malhotra Group are bringing forward investment in this iconic and historic area of the city.

“Significant investment like this demonstrates the private sector’s commitment and willingness to invest in Newcastle’s future.

“Newcastle is growing, and it’s important that we continue to create the right conditions to attract further investment and development in the city. This announcement supports our own ambitious plans for Newcastle to encourage economic growth and create jobs for future generations.”

David Coundon, director at Space Architects who is leading the design team, is currently discussing the planning submission with Newcastle City Council and will soon be carrying out a conditions survey of the existing buildings, along with surveys which generate a 3D model of a building using laser technology.

The information will then be used to generate an interactive model image of the buildings, which will form the basis for the design and enable the team to analyse, review and consider the historic fabric, and deliver the project on time, avoiding added costs.

Mr Coundon added: “We are very excited at the scale and ambition of this project. It allows us to deliver an important restoration project for the city, generating new luxury facilities that will attract visitors and locals alike.”