The company, which operates three sites in Leeds alongside its one in Manchester, is currently restoring the Grade II listed Friar House in the centre of Newcastle with the intention of turning it into 44 luxury apartments and suites by November.
It will be the first property taken over by Roomzzz, which aims to combine features of a boutique hotel with serviced apartments, in the city since the company was formed in 2006 and is part of major investment this year into the brand.
"We are proud to be a part of Newcastle's hospitable future," said Mark Walton, head of Roomzzz Aparthotel UK. "We are bringing an influx of new jobs to the city and are looking forward to Roomzzz Newcastle City sharing Newcastle's famed warmth and hospitality through the aparthotel and our choice of team to all of our guests.
"'Roomzzz booking trends are showing excellent repeat bookings and a clear navigation through our locations by our guests. We have had an unprecedented level of interest in Newcastle City with advance bookings well ahead of target."
Walton, who was a franchise manager at easyHotel before joining Roomzzz in 2010, said the company was experiencing a strong year as interest grew in the unique concept, hence investment in new and existing sites.
In addition to investing £5m into Newcastle, the company will spend £500k on adding 11 new apartments to its Manchester City site to help it 'cope with demand'. The site, also situated in a Grade II listed building, currently offers 48 apartments.
Walton said: "2012 is an important year for the brand with key investment into major UK cities. Roomzzz Aparthotel is known for its innovation and with that the ability to attract large and varied demographics to its locations which has driven the company to a strong position year on year."
Roomzzz maintains that it offers the same service to guests as a luxury hotel. Apartments feature kitchens, Apple gadgets, memory foam beds, complimentary wi-fi, free local and national telephone calls, a 24 hour concierge and a complimentary 'grab and go' breakfast. Apartments can be rented by guests from as little as one night up to a year.