The former Pocotel in Glasgow has been sold to the Address Collective from a guide price of £4.5m.
The corner site at 139 to 141 West George Street comprises a six storey, B-listed building, recently refurbished with 91 guest bedrooms, a restaurant, bar, meeting and fitness rooms.
The property also includes two income producing retail units: Tony Macaroni and Mozza.
It was being offered by Savills on behalf of Azets, which was acting as joint administrators of Bracknell Property.
The insolvency, at the start of April, was caused by unsustainable cash flow problems stemming from poor trading and low occupancy levels caused by the pandemic - with 14 staff made redundant at that stage.
Steven Fyfe, associate director in the hotels agency team at Savills Glasgow, commented: “This sale demonstrates there is appetite from hotel investors to secure representation in Glasgow where there is a robust hotels market driven by tourism and business.
“The purchaser here has plans to create a bespoke product that we know to do well and which we believe will enhance Glasgow’s hotel offer.”
Derek Forsyth, partner at Azets, stated: “Not surprisingly, the hotel had suffered operationally as a result of lockdown.
“Our appointment as administrators brought a period of stability, providing us the opportunity to take control of the asset and negotiate with the various stakeholders in an orderly fashion, ultimately bringing the deal to completion within a period of seven months.”
Ciara McGettigan, owner of the Address Collective, added: “This purchase demonstrates our appetite to grow the Address Collective Brand and we have plans to create a bespoke product that will enhance Glasgow’s hotel offering.
“The building lends itself to a truly boutique hotel and we look forward to the launch of The Address Hotel Glasgow.”
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