An iconic seafront hotel has ceased trading – just a year after it was saved from going under.
The Rex Hotel, on the Promenade, Whitley Bay, was bought by the Malhotra Group Ltd last January, just days after going into administration.
But now that deal has failed to secure a long-term future for the hotel, despite plans for a major investment.
In the last 12 months it is believed the hotel has suffered massive losses.
As a result, the agreement to save the hotel has been terminated and administrators RSM have announced the Rex’s closure.
However, the Deep nightclub, attached to the Rex, will continue to be operated by the Malhotra Group.
Speaking last year, Malhotra Group director Atul Malhotra said: “We are looking to invest a six-figure sum into the hotel.
“We want to develop it and refurbish it as it is in a sad state at the minute.
“It’s an iconic site. We are going to invest in it and continue to run it as a hotel and nightclub.
“We’ve got other business interests as well as other hotels and bars in our portfolio and we felt the Rex Hotel was a nice fit.”
The seafront hotel started life as the Waverley Hotel in 1907. It changed its name in the late 1930s when it got a licence to sell alcohol for the first time.