WORK has begun on a landmark development on Tyneside.

The 152,000sq ft development, at the northern end of the Team Valley in Gateshead, features a mix of offices, hotels, leisure and car showrooms, providing services for the 6.5 million sq ft business estate.

Work has started on a 116-bed hotel leased to Golden Tulip UK. The 92nd Tulip Inn in Europe, it is due to open next summer. Peter Roberts, managing director of Golden Tulip UK, said: "I am delighted Gateshead is our first hotel in the North-East, with further locations to be announced. The new Tulip Inn will be ideally situated to meet the needs of businesses and leisure customers looking for an upper-tier budget hotel with good access to road and rail networks and within easy reach of the airport, the MetroCentre and Newcastle city centre.

"The region is a rapidly changing and dynamic area and I am confident this hotel will play its part in attracting both business and leisure travellers. The new hotel will create around 45 jobs, in addition to those involved in its construction and fitting out."

Sir Ian Wrigglesworth, executive chairman of UK Land Estates, said: "This is the largest development that has taken place on the Team Valley in recent decades.

"It will greatly extend the range of facilities and services available on the Valley and help to make it a much more attractive working environment. The hotel, combined with a 60,000sq ft office, retail and leisure facilities, further consolidates Team Valley as the prime business location in the North-East. We are already talking with major occupiers for the office and strong interest has been expressed in the convenience retail."

The Mayor of Gateshead, Councillor David Lynn, said: "I am delighted to see this new development taking place in Gateshead. It will help stimulate more economic activity and provide much-needed employment in the area."