Squire Hotels' Hydro hotel in Windermere, Cumbria, has followed its sister hotels into administration.
Phil Pierce and Paul Whitwam, partners at FRP Advisory, were appointed joint administrators of the 78-bedroom hotel on 8 February after a large-scale renovation project led to cashflow issues.
The administrators are now in advanced talks with potential buyers and hope to conclude a sale of the hotel soon, until which time the hotel will continue to trade and all 32 employees have been retained.
Squire Hotels acquired the property in 2014 for a sum close to the guide price of £3.75m from Paul Tomlinson and Ken Burchill ahead of their retirement. The group's 86-bedroom Samlesbury hotel in Preston, Lancashire fell into administration in April last year and was quickly followed by its 64-bedroom Etrop Grange hotel in Manchester.
It was announced earlier this week that the Samlesbury had been bought out of administration by KRO Hospitality in partnership with AccorHotels, and will operate as the Mercure Preston Samlesbury hotel after a £1.5m revamp and relaunch in April.
Phil Pierce, partner at FRP Advisory, said: "The Hydro hotel is a beautiful building that is situated in one of the most stunning locations in Britain. The business has huge potential and our focus is now on working with the directors to secure a sale of the hotel and ensure the best possible outcome for everyone involved."
Doug Robertson and Philip Middleton of Irwin Mitchell Solicitors based in Leeds have been engaged to assist the joint administrators with the sale.Get The Caterer every week on your smartphone, tablet, or even in good old-fashioned hard copy (or all three!).