THE FATE of the historic Royal Hotel may soon be decided as administrators reveal a “high level of interest” in the property.
The 18-bedroom hotel fell into the hands of administrators last week following the collapse of its parent company English Rose Hotels Scarborough Ltd.
The firm also owned the Clifton Hotel, in Queen Parade, which had been put up for sale earlier last month.
After a week in administration a number of interested parties have come forward. A spokesman for administrators MCR said they are now in talks regarding a sale and that there is “a high level of interest in both hotels”.
Both hotels have been running as normal since going in to administration with all room and event bookings honoured.
A source at the Royal Hotel told the Evening News it is believed 25 staff had been made redundant, however administrators have confirmed just three jobs have been lost in office staff.
English Rose Hotels Scarborough Ltd was owned by the Turner family, who were force to hand over the company to administrators after building up “significant” debts in tax arrears.
The family also owned Wrea Head Hotel Ltd and English Rose Hotels plc, which owned the Hackness Grange Hotel.
However both companies also fell in to administration, only a matter of days after the demise of English Rose Hotels Scarborough Ltd.
As with Clifton and the Royal, administrators are running the Wrea Head and Hackness Grange as normal until a buyer is found, with all 52 staff kept in work.
Chris Rooney, joint administrator and director at Price Waterhouse Coopers, acting administrators for English Rose Hotels plc and Wrea Head Hotel Ltd, said: “The companies have experienced recent financial difficulties and cash flow problems, leading to the insolvencies.
“The two hotels continue to trade and existing bookings will be honoured until further notice, whilst a buyer for the business and assets is sought.”