Caledonian Hotel on Osborne Road Sold, With £2 Million Investment Planned

The Caledonian Hotel on Osborne Road, home of the student-favourite Phoenix bar, has changed hands. As reported by JesmondLocal, Peel Hotels has sold the 89-room hotel to Saggar Leisure Ltd, a Newcastle-based property developer that is new to the hotel business.

Why It Was Sold

The sale followed the decision by Peel Hotels chairman Robert Peel to retire, with the group's four properties put on the market through Christie & Co. Boutique Hotelier reports that Saggar Leisure is headed by Sunny Saggar. The deal completed in early October, and the price has not been disclosed.

What Happens Next

In comments reported by JesmondLocal, Rajeev Saggar said: "Our plans include a £2 million investment over the coming years." He added that keeping the hotel's current management and staff was a priority. No details of the works, or a timetable, have been published yet.

That uncertainty has prompted some questions locally. Councillor Peter Allen said he had been given very little information about the plans, and one student who uses the Phoenix told JesmondLocal she was worried about the bar closing for a long period during any refurbishment. There has been no announcement of a closure.

A Familiar Osborne Road Landmark

The Caledonian sits on one of Jesmond's busiest stretches of bars and restaurants, and its Phoenix bar is a regular stop for students. The building was hit by a major fire in 2019.

For more on the street, see our guide to eating and drinking on Osborne Road, or browse hotels and places to stay in the Jesmond directory.