Virgin Hotels Glasgow has ceased operations, marking its closure a mere four months after its initial opening.
The opulent 242-room hotel was unveiled in August, representing the second addition to the Virgin brand's portfolio in the UK, with the first opening in Edinburgh in 2022.
Uncertainty loomed over the future of Virgin Hotels Glasgow as the building's owner, Lloyds Developments Ltd, which held a management contract with Virgin Hotels, collapsed into administration on December 1st.
Despite ongoing operations, Virgin Hotels Glasgow informed its staff on December 19th that it would be closing its doors.
It is reported that V Hotel Glasgow Ltd, the company operating the hotel, faced financial constraints and lacked the necessary funds to sustain its operations.
A Virgin Hotels spokesperson said: 'Lloyds Developments Ltd – the owner of Virgin Hotels Glasgow, which Virgin Hotels has a management contract with – has financial problems and on 1 December its lenders put it into administration.
'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 stated that it made an offer to purchase the hotel with the intention of keeping it operational and preserving all staff positions. However, the bid was declined.
'Unfortunately, the lenders have not accepted Virgin's offers and intend to pursue a sales process with the hotel closed,' a Virgin Hotels spokesperson added.
'Virgin Hotels is very disappointed by this decision after the hard work everyone has put into the hotel and because of the impact it will have on the team that works there.'
Unite Hospitality tweeted that the staff at Virgin Hotels Glasgow were uncertain about whether they would receive payment for the hours they had worked.
However, Virgin Hotels said it was 'committed to ensuring employees are paid for every day they have worked this month'.
Interpath Advisory, the firm overseeing the administration of Lloyd's Developments Ltd, has announced its efforts to facilitate the sale of the building.
'The Virgin Hotels team continues to have great ambitions for managing the hotel in Glasgow and looks forward to re-opening once a new owner is in place,' a Virgin Hotels spokesperson said.
The first Virgin Hotels property debuted in Chicago in 2015, and since then, the brand has expanded to six locations across the United States. It's important to note that the closure of Virgin Hotels Glasgow does not affect any other Virgin hotel, and all other properties continue to operate under normal conditions.