Ability Hotels has decided it is "no longer viable" for the DoubleTree by Hilton Aberdeen City Centre to trade and directors are placing the company into liquidation.
As a result, the 168-bedroom hotel will remain closed and staff members' roles will be made redundant.
A statement from Hilton said: "We are saddened by this news and wish the team at the hotel well, in what we appreciate is a very difficult time."
Speaking to the BBC, Martyn Giles, head of asset management for the Ability Group, blamed the slump of the oil market in recent years coupled with the impact of Covid-19
He said: "The Ability Group have explored every avenue to keep the hotel open for many months now and retain the loyal team members but ultimately and to our extreme disappointment this has proved to not be possible."
The Ability Group acquired the hotel in 2014. It has a portfolio of 13 other hotels, including two Travelodge hotels in Southport and Newcastle, and DoubleTree by Hilton hotels in Cambridge and Dunblane. The British property company was founded in 1996 by Andreas Panayiotou and recently bought the Hampton by Hilton Bristol Airport for more than £24m.