The 42-bedroom Lace Market hotel in Nottingham has closed after a failure to find a new owner for the business since it went into administration five months ago.
Located in a Grade II-listed Georgian townhouse, the boutique hotel featured the Merchants restaurant and Saints bar. It was one of four properties within the Finesse Collection alongside the Lion in Belper; Donington Manor, Castle Donington and the Cathedral Quarter Hotel, Derby. None of these other hotels are in administration or are affected by the closure.
However, the Cock and Hoop public house, next door to the Lace Market, has also closed.
Finesse Collection is now aiming to help the 42 staff from the hotel and pub find alternative employment.
Dean Nelson, head of business recovery and insolvency at accountants firm Smith Cooper, said that attempts to sell the business as a going concern had failed.
"The future of the Lace Market hotel has been uncertain for the past five months as the ongoing financial position continued to be challenging. We had intended to sell the business but unfortunately the level of interest for purchasing the goodwill was minimal."
James Blick, director of Finesse Collection, said: "We are devastated we have got to this position and I would like to extend my sincere personal appreciation to everyone involved for the contribution they have made over the years to make the hotel a success."
The freehold of the Lace Market has now been sold to private investors, who intend to refurbish the property.