Aberdeen’s Northern Hotel is to be converted into student accommodation, following the successful acquisition of a multi-million-pound development loan. The Art Deco landmark, which had fallen into a state of disrepair since its closure, is now poised for a significant overhaul.
The former hotel, strategically located at the junction of Great Northern Road and Clifton Road, ceased operations in late 2022, primarily due to escalating energy costs. Following its closure, proposals by Inspired Living LLP to transform the 32-bedroom establishment into 47 student flats were submitted in April 2024 and subsequently approved by council planning authorities later that year.
However, a period of inactivity raised alarms regarding the condition of the A-listed structure. Reports indicated significant deterioration within the building, including collapsing ceilings, the presence of pigeons in the former reception area, and evidence of water leaks.
The project has now received a substantial boost with development finance lender Atelier announcing the completion of a £4.7 million loan. This funding is specifically designated to facilitate the extensive transformation of the historic hotel.
Simon Flame, who leads Inspired City Living, articulated the importance of the undertaking, stating: “The Northern Hotel is a significant aspect of our student accommodation plans in Aberdeen. We anticipate that our premium student studios will be ready for the start of the September 2027 academic year.”
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Atelier underscored the necessity of the project in addressing a critical gap in the city’s housing market. The company stated that the scheme would contribute to alleviating a “considerable shortfall of high-quality student accommodation” in Aberdeen.
Luke Eadie, lending manager at Atelier, expressed confidence in the venture: “This is our first transaction with the borrower, who has a strong track record of delivering high-quality student accommodation in Aberdeen. That experience, together with the quality of the underlying asset and a clear conversion strategy, gave us confidence in the scheme and we’re pleased to be supporting its delivery.”
Further progress is evident with the developers having secured a building warrant from Aberdeen City Council. This permit allows for the commencement of initial works as part of the redevelopment’s first phase, with planning documents indicating these preliminary efforts are expected to cost £2 million.
