Virgin Hotels Glasgow put up for sale after sudden closure last year

The Virgin Hotel in Glasgow has been put up for sale after only being open for around four months last year.

The 17 storey-building on the city’s Clydeside opened its doors on August 18, 2023 before closing just months later, leaving more 100 members of staff without a job days before Christmas.

The owner of the hotel, Lloyds Developments Limited, collapsed into administration in December due to financial difficulties.

The site includes 165 completed bedrooms, with capacity for up to 242, a ground floor restaurant and bar, a mezzanine bar and lounge, a flexible terrace area and conference and meeting space for up to 60 people.

Savills, the real estate agency, said 77 more bedrooms have the potential to be completed along with public spaces such as a proposed gym, function suite, whisky bar and coffee shop.

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A total of 130 employees were made redundant immediately and the doors of the hotel were locked on Tuesday.

Steven Fyfe, director in the hotel capital markets team at Savills Scotland, said: “This is a rare chance for a purchaser to secure a prime asset that has been fitted out to an excellent standard in line with a luxury lifestyle hotel with the possibility of being in an income producing position from day one.

“Situated in a prime location within Glasgow city centre, the hotel is just a short walk from Glasgow Central Station and Buchanan street, as well as being in close proximity to all of Glasgow’s key demand drivers.

“Given it’s excellent credentials, we anticipate a significant level of interest from a global pool of buyers.”

In a bid to rescue the troubled hotel, Richard Branson-owned Virgin Group had approached owners Lloyds Developments Limited to purchase Virgin Hotels Glasgow last year to keep it in operation.

However, this was not accepted by the lenders and a sale was pursued.

A spokesperson from Virgin Hotels, said: “Lloyds Developments Limited – the owner of Virgin Hotels Glasgow, which Virgin Hotels has a management contract with – has financial problems and on December 1 its lenders put it into administration. 

The Virgin Group approached Lloyds Developments Limited to purchase the hotel before it went under. Photo: STV News. STV News

“As a result, the directors of V Hotel Glasgow Ltd, the employer and operating company in respect of the hotel, are being advised by FRP Advisory LLP as they place that company into liquidation.

“These financial issues mean that the hotel cannot continue operating and now has to close.

“Virgin Group tried to find solutions, including offering to purchase the hotel, to keep the hotel open, keep the team in employment and ensure the completion of the development of the hotel, creating something the city of Glasgow could be proud of.

“Unfortunately, the lenders have not accepted Virgin’s offers and intend to pursue a sales process with the hotel closed.”