As the year draws to a close, one family-owned business is looking clearly to the future, with plans to enrich the region's social, community and leisure infrastructure. Emma Walker reports on what 2019 holds for the Malhotra Group plc.
Strong family values and ethics have underpinned the Malhotra Group’s growth in the nearly three decades of its existence – and strategic investments in high-potential buildings have enabled it to increase its turnover year-on-year.
Coupled with its astuteness in predicting industry trends and making wise investments, the company has emerged as a leading real estate developer in the North East, with a portfolio of properties comprising banks, care homes, hotels, restaurants, and bars.
Indicative of the good times the business, whose registered turnover last year was £32m, is split into three divisions – Property, Care and Leisure the company continuously expands these, with new property development projects regularly added to its workload.
Grey Street
One of the most remarkable programmes the business will undertake is the creation of a £35m 120-bedroom, four-star hotel with a rooftop swimming pool, a nightclub, restaurants, and retail outlets on Newcastle’s Grey Street.
The jewel in the crown of Malhotra Group’s impressive property portfolio, the Grey Street scheme is expected to become a visitor attraction in its own right, and will play a vital role in the local economy by creating a significant number of jobs.
The site comprising nine buildings – will stretch from Grey Street down to its junction with Mosley Street and across to the lower part of Cloth Market and will include the famous Balmbra’s Music Hall, which is being fully restored as part of the project.
The leisure complex, which has already commenced, will be a five year project, strengthening the Malhotra Group’s foothold on Newcastle’s finest street, where it already operates the boutique Grey Street Hotel, which recently underwent a £1.2m refurbishment.
Following the Group’s £4m purchase of 42-50 Grey Street, its aim is to relocate head office staff into the office accommodation on the upper two vacant floors.
When complete the building will be renamed Malhotra House and the address listed as 50 Grey Street.
The Jesmond Block Development
This is an ongoing four-phase project for the Malhotra Group – and the first phase has already been completed, with the opening of Mexican-inspired El Paso in the former Scalini’s restaurant site. In the second phase, the former Louis restaurant will be transformed into a multipurpose gaming bar, called Eat, Chill, Play, with a cinema, bowling alley and football tables targeting customers of all ages.
El Paso’s Ariba Bar will then be transformed into a decadent gin bar Jesmond Gin House – and, finally, the New Northumbria Hotel’s rear elevation will be remodelled to create 13 new suites, some of which will be equipped with a kitchen and dining area, as well as a new wedding suite.
Three Mile Inn
In Gosforth, work is already underway on an 18-month, £5.6m project to transform The Three Mile Inn, into a 64-bedroom hotel, bar and restaurant.
The development comprises three main phases, beginning with the construction of a threestory extension, which will ultimately provide additional accommodation for the hotel.
Further phases will include the conversion of the existing building from two to three storeys and the creation of conference, function and private dining facilities, a residents’ lounge, café, bar and restaurant. An estimated 25 jobs will be created when work is complete and the Malhotra family, who have strong links to Gosforth, hope that as well as welcoming leisure and corporate guests, the venue will become a much-used community hub for neighbouring families.
The Bigg Market
In October 2018 work began on the Malhotra Group’s latest contract win in the leisure sector; a £100,000 redevelopment of Pumphrey’s Bar, part of a wider £3.2m regeneration programme designed to reinvigorate Newcastle’s Bigg Market.
Prestwick Care
Three major programmes are also underway for Malhotra Group’s Care division; Beech Tree House, an 86-bed care home, at the site of Alnwick’s former bus depot, Bay View House at Whitley Bay on the site of the former Rex Hotel and the two-storey, 66-bedroom Bede House care home at Ryhope, Sunderland.
Naturally, these ambitious developments will create multiple jobs across the various facilities. In fact, the company has clearly stated its intention to grow its workforce from 1100 to 1800 staff over the next five years.
And given that the organisation reported an increase in its headcount by 116 in 2017, there is no reason to doubt the achievability of this objective. Its successful completion will once again underline the ever-growing role the group is playing in boosting the local economy and nourishing the local community of the Tyne and Wear county.
Having a well-diversified business has yet again proved to be the right model for the Malhotra Group, given the positive financial results the company registered last year. Maintaining a balanced portfolio of care home facilities, leisure sites, and geographically spread investment properties, the company is facing excellent prospects to continue its growth through careful strategies and forwardthinking management in the years to come.
