The Gainford Group, owner of Newcastle hotels, bars, and restaurants including The Vermont Hotel, is advancing its £200m flagship mixed-use development in Newcastle city centre after reporting an "outstanding" year of trading. The Chester-le-Street based property, care, and hospitality company saw turnover rise 9% from £52.7m to £57.3m in 2025, while operating profits jumped 30% from £10.7m to £13.9m. Pre-tax profits increased from £11.3m to £14.7m, and overall profit for the year was £10m, up from £7.7m.
Flagship Development Progress
The group, which employs 1,151 people, is progressing pre-construction and design optimisation work on its flagship £200m mixed-use landmark development in Newcastle city centre. The master plan integrates a 190-unit premium residential tower, a five-star 200-bed hotel, and Grade-A commercial office spaces, all anchored by a vibrant public realm with retail, hospitality, and wellness facilities.
To enhance the scope and commercial viability within Newcastle city centre, the group has acquired Croft House, a property immediately adjacent to the core site. Architectural and planning teams are finalising design integration of this asset into the wider master plan, expanding the project's contiguous footprint and unlocking critical structural connectivity.
Record Financial Performance
The company's accounts for 2025 highlight a strong financial performance, with turnover rising from £52.7m to £57.3m. Operating profits surged 30% to £13.9m, while pre-tax profits reached £14.7m. The overall profit for the year was £10m, compared to £7.7m in the prior year.
Directors stated: "The group has delivered another outstanding year, achieving record financial results while continuing to invest in ambitious future growth. Our performance reflects the strength of our businesses, the commitment of our staff and management, and the confidence we have in the long-term prospects of the region."
Strategic Acquisitions and Expansion
In line with the group's long-term strategy of driving sustainable growth through targeted acquisition, asset diversification, and geographic expansion, several major capital projects are progressing. The group has strategically acquired multiple land sites across the North East for development, with phased construction planned from 2026 onwards. This initiative represents a major step in the group's expansion strategy, substantially increasing its regional footprint and capacity for future growth.
Recent acquisitions include Croft House, Milburn House, and the former Premier Inn in New Bridge Street. The group also bought the historic Moot Hall in 2019.
Vermont Hotel Refurbishment
Work has also started on an extensive refurbishment of The Vermont Hotel Newcastle to maintain high standards of services and facilities. The hotel is a flagship property in the Gainford Group's portfolio, which also includes The County Hotel, Above, Aveika, Vermont Aparthotel, Livello, and The Hudson.
Recognition and Future Outlook
The group was recognised by the Financial Times as one of the Best Employers UK, the only independent North East company included in this list. Directors expressed pride in this recognition, reflecting the culture, values, and people driving the company's success.
Looking ahead, directors said: "We are excited by the next phase of growth, supported by the acquisition of key development sites and a strong pipeline of regeneration projects. These investments reinforce our long-term commitment to the North East and our ambition to deliver high-quality, landmark developments."
