easyHotel in Glasgow has fallen into administration with the loss of 16 jobs.
Ernst & Young have been appointed joint administrators of Glasgow eH (Trading) Limited, the operator of the budget hotel at the request of the company's director.
The 125 room hotel, which opened in April 2012, will close with immediate effect with the loss of 16 jobs.
Fiona Taylor of Ernst & Young said: "The company is a victim of the economic conditions that continue to have an adverse impact on the hospitality industry. We are currently undertaking a full review of its financial position, but an immediate lack of funds has necessitated the closure of the hotel and the resultant job losses.
"Employees will be offered appropriate support and advice throughout the redundancy process. Steps are being taken to find guests alternative accommodation in Glasgow."
The administration only affects the trading company Glasgow eH Limited, not the parent and owner of the former Drummond House site Glasgow eH Lmited Partnership.