The plans will see the Mile Castle pub, located on Westgate Road and Grainger Street, benefit from the addition of a new 26-bedroom hotel and full internal refurbishment, including updated decor, fixtures, fittings, and lighting.
A new cellar will also be created while the pub’s, which first opening in December 2009, third floor bar will be extended.
In addition, a new beer garden on the former car park to the side of the building, totalling more than 3,000sqft, will also be developed.
New look
Work on the Mile Castle is set to begin on Monday 13 May, with the pub being closed between Monday 24 June Tuesday 3 September, when it will reopen with a new look.
Meanwhile, work on the hotel, which is being built in an adjoining building formerly occupied by law firm Samuel Philips, is expected to be completed and opened by Tuesday 12 November.
All rooms will be en-suite, with two designed specifically for guests with disabilities.
The firm said the development would create 70 new full and part-time jobs at the pub, which already employs some 130 team members.
Last month, the pub behemoth unveiled plans to invest £2.5m into opening a new pub near BrewDog’s huge London site at The Sidings in Waterloo Station.
Popular pub
The pubco also opened its first holiday park pub in March, the Five Stones, situated at Haven’s Primrose Valley holiday park in Filey, North Yorkshire.
In addition, JDW’s latest trading update identified the possibility of increase its estate by just under a quarter (23%), with sales to the 26 weeks ending 28 January up 8.2% year-on-year.
JDW founder and chairman Tim Martin said: “The investment highlights our commitment to the pub, its customers and staff, as well as the city of Newcastle.
“The Mile Castle is an extremely popular pub, and we are confident that our customers will welcome the work being undertaken in the pub as well as the creation of our first hotel in the city.”