Wed, 06 Apr 2022 | ADMINISTRATION
The lease on a prominent Glasgow building that formerly operated as a hotel has gone up for sale after the companies operating the site fell into administration. The lease for the former Park Inn by Radisson Glasgow City Centre will be marketed for sale by Savills following the collapse of Bracknell Property and Bracknell Property Subco.
Bracknell Property had an interest in the lease for the site, which is located at 139-141 West George Street, while the hotel was traded by Bracknell Property Subco. Azets partners Derek Forsyth and Nicola Banham were appointed joint administrators to both businesses, which were suffering from cash flow issues.
Cash flow issues arose due to pandemic-related trading problems and low occupancy levels. These issues ultimately proved to be unsustainable, leading to the closure of the hotel, which ceased trading with all staff made redundant.
The hotel has 91 bedrooms, a restaurant and lobby bar, as well as two conference suites. The joint administrators say that they expect strong interest in the lease, which is being sold with more than 100 years remaining, both from parties looking to acquire well-located Glasgow properties, as well as existing hotel operators.
Commenting on the sale process, joint administrator Derek Forsyth said: “Unfortunately both companies were severely affected by the combination of poor trading and low occupancy levels - the downturn in trading and income was such that the businesses were unable to continue operating and administration was the only option.”
Forsyth continued: “139-141 West George Street is a prominent landmark building, and the lease has over 100 years left to run, so will be of significant interest to established operators and entrepreneurs looking to locate a business in the heart of Glasgow city centre.”
Read more about growing M&A activity in the UK's hotel sector.
One of the best ways to find properties below market price is to look at recent administrations.
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