Mildez! Let me tell you some names of the most famous and beautiful Hotels near New Castle:
Staybridge Suites Newcastle
Hotel Indigo Newcastle
The Vermont Hotel
Jesmond Dene House
Hotel du Vin & Bistro Newcastle
Sleeperz Hotel Newcastle
Royal Station Hotel
Malmaison Newcastle
Think that may just be the wrong Newcastle

I second the Nelson Bay area but it is a bit of drive in to Newcastle, from memory 45 minute - an hour. We have stayed at Noah's on the Beach, which is right near Nobby's, but no pool (that we found) and rooms were small with kids. It was more of an overnight trip than a 'holiday', so to speak.