The Palace hotel in Torquay will be closing at the end of the month for an unspecified time during an extensive redevelopment, with all staff being made redundant.
It was announced that Singapore-based property and investment company the Fragrance Group acquired the four-AA-star, 141-bedroom hotel for an undisclosed sum off a guide price of more than £10m earlier this week.
Devon Live has reported the number of staff as 80 and that several members of staff also live in the hotel.
The directors of Torquay Palace, which operates the hotel, confirmed they have exchanged contracts on the sale of the property, and released a statement which read: "The purchasers have significant plans to redevelop the property and, as such, the hotel will be closing at the end of July to allow for this.
"In view of this, the directors will be closing the business and will therefore be undertaking a period of collective redundancy consultation with all staff. All guests who have bookings for the period beyond 31st July 2017 will be contacted and we are seeking to assist with alternative venues where possible. We apologise for any inconvenience that this may cause and, in particular, are very sorry to be consulting with staff regarding redundancy, many of whom have loyally served the business for decades.
"Our priority at this time is ensuring that staff and guests are properly consulted, we will therefore not be making any further statements at this time."
The hotel is the second to be bought in the UK by Fragrance, founded by Koh Wee Meng, one of Singapore's richest businessmen, following the acquisition in February of the four-AA-star, 180-bedroom Imperial hotel in Blackpool, for £12.8m.
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