A preferred bidder has been selected for the £3m luxury Ellington hotel in Leeds with a deal expected to be completed within weeks.
The 35-bedroom Ellington, which only opened in September last year, was previously managed by Pantin Hotels and put up for sale in March after its owner City Retreats went into administration in February.
Craig Millward, director at property agents CB Richard Ellis Hotels, which is handling the sale on behalf of the receivers Menzies Corporate Restructuring, said a preferred bidder had been selected and the deal was expected to complete "in a couple of weeks".
In March CBRE said the hotel, offered on a freehold and unencumbered basis, was a "perfect opportunity for a private owner operator who wants to run the business".
Pantin Hotels, which was founded by former Rocco Forte Collection managing director David Pantin and operated the Ellington, is believed to have shelved plans to open a second hotel in Leeds, the Crispin, in 2011 after the management agreement for the development lapsed.
By Gemma Sharkey
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