The work should be completed later this summer.
Montagu Park Hotel has 55 extensively refurbished bedrooms as well as a new restaurant.
Montagu Park Hotel is a classic Art-Deco building dating from the 1930's. The design and décor of the new-look bedrooms pays homage to the hotel's Art Deco roots. Most of the rooms also boast a sea view.
The Salt Cove is the restaurant at Montagu Park Hotel.
Montagu Park Hotel has six meeting and conference rooms each equipped with the latest audio-visual systems, a choice of projector screens, free wi-fi and free parking for up to 200 cars.
The largest suite - the Large Ballroom will seat up to 1600 delegates theatre style.
Montagu Park Hotel is located in Tynemouth on the north-east coast with easy access to Newcastle City Centre, Newcastle International Airport and the North Shields Ferry Terminal.