The 48-bedroom Yang Sing Oriental hotel, which adjoins the eight-floor Yang Sing Cantonese restaurant in the city and opened just eight months ago, closed its doors on Monday 2 March.
Co-owner and restaurateur Gerry Yeung said his "dream had been shattered by the closure". He added in a statement on the hotel's website:
"We tried to create the best hotel in Manchester and we really feel that we have succeeded. Everyone who stayed here loved it.
"Unfortunately, our timing could not have been worse; opening only to suffer a global banking crisis, credit crunch and the worst recession since the 1930s."
Funding for the hotel was provided by the Yeungs, private investors and Natwest Commercial Banking.
The hotel is the latest in a series of victims of the global economic crisis, after Folio Hotels, Real Hotel Company and The Ellington in Leeds.
By Gemma Sharkey
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