Northland Properties plans to refurbish the structure and develop a 169-room hotel known as the Sandman Signature, which will boast some fantastic views of Newcastle city centre.

The project will be the start of a European expansion by Northland, which is the largest privately owned hotel group in Canada with 35 properties across the country.

The deal with Northland is a fillip to the 600,000sq ft Downing Plaza development on the S&N brewery site which has already signed up Newcastle University Business School as a tenant and is finalising terms with another hotel operator Accor.

The news of the Northland investment comes after Jurys Inn announced it was to build a new 200-bed hotel on the Gateshead quayside.