A historic North East hotel purchased by a developer last year will close its doors ahead of plans to transform the building into apartments.

Acland Homes has confirmed the Staincliffe Hotel in Seaton Carew, Hartlepool has closed after its previous tenant left following difficulties surrounding “insufficient business,” as well as large gas and electric bills.

They said the gas bill for the quarter was around £14,000.

They added they sought to find an alternative temporary solution for the building but believe they are unlikely to find a suitable person.

Following this, the developer has closed the hotel and boarded up the building while they continue with the planning process.

Stephen Litherland, managing director of Acland Homes, said: “As is common knowledge we acquired the hotel in July 2023 with the intention of redeveloping the site.

“It’s also common knowledge that the hotel is in a poor state of repair having been neglected for years.

“In July we brought in a tenant, on a peppercorn rent basis, to keep the hotel open whilst we took the site through the planning system.

“Unfortunately, on 27th December 2023, the tenants advised that there is insufficient business and that he was making a significant month-on-month loss that is unsustainable even in the short term.

“We have therefore taken the decision to close the building down and for security reasons remove the loose contents and board the building up.

“In terms of the planning application, we have made some amendments following feedback from our consultation event and the pre application advice from the Council.#

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“We will be lodging the application with HBC shortly.”

Acland Homes announced they had completed the purchase of the hotel in July last year.

The Staincliffe Hotel was built in 1869 as a home for wealthy West Hartlepool merchant Thomas Walker and was converted into a hotel in the 1920s.