The 69-bedroom, five-AA-star Scotsman hotel in Edinburgh has been sold to Scottish hospitality company the G1 Group.
The company also operates four other hotels in Edinburgh: the Grassmarket hotel, the Murrayfield hotel, Stay Central and the Inn on the Mile.
Following an agreement concluded yesterday, the property is being sold to G1 independent of the brasserie and spa facilities, which are under separate ownership.
More than 90 employees currently working across the hotel and F&B areas of the business will transfer to G1. The company said it is committed to providing appropriate opportunities, including within other G1 venues, to all of the staff.
It is reported to be the group's biggest single venue purchase in its 27-year history.
The Sotsman went into liquidation last year after HMRC filed for a winding-up order after the hotel failed to pay its debts and was put up for sale. Previously operated by the JJW Hotels and Resorts group, part of MBI International, the hotel was known to have been suffering from trading difficulties for more than a year.
Opened in 2001 by the newly formed Scotsman Hotel Group in the former Scotsman newspaper building, it was bought by JJW in 2006 for more than £60m. It went into administration in 2011, but was rescued by Sheikh Al Jaber, founder and chairman of JJW, soon after.
The "complex deal" for the acquisition of the hotel was brokered between representatives of the G1 Group, JLL Hotels & Hospitality Group and CBRE Hotels. The two property companies were brought in to market the hotel following the appointment of Eileen Blackburn of French Duncan as liquidator in June 2016.
Brian McGhee, chairman at G1 Group, said: "Buying anything out of liquidation is a difficult process for all concerned, and we cannot commend Eileen Blackburn and David McGinness of French Duncan enough for their professionalism throughout, in their ability through their rapport with the hotel team to retain a significant amount of goodwill from both patrons and staff members, at a very difficult time for both."
Managing director of G1 Stefan King added: " We have enjoyed huge support from Edinburgh City Council, the patrons and the teams employed in our Edinburgh venues over the years. The acquisition of the Scotsman hotel is a significant reflection of a continued commitment to the city, and to the creation of further opportunities for the Group and its employees."
The Scotsman is a member of the Preferred Hotels & Resorts LVX Collection and will continue to be so following the acquisition.
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