The sale of the Newstead Hotel is set to finally go ahead after the owner of a beauty salon in the Paget property agreed to move out.

The sale to developer Kevin Petty was being held up because the owner of the Inverurie Beauty Salon at the hotel, Ann Proctor, turned down offers to terminate her lease early.

Mrs. Proctor confirmed yesterday that she is now moving out at the beginning of July and was "hoping" to re-open at another location.

Mr. Petty, who owns the nearby Belmont Hills resort, is planning to build a 104-room hotel and spa at Newstead's waterfront location on Harbour Road.

Mr. Petty refused to comment and Newstead owners Tony and Dana Goodfellow did not return a call yesterday.