Building for sale

Glasgow hotel fails following Covid cash flow issues

Checking out: 139-141 West George St

A Glasgow hotel in central Glasgow has fallen into administration and the building has been put up for sale.

Derek Forsyth and Nicola Banham, partners with Azets, were appointed joint administrators of Bracknell Property and Bracknell Property Subco who together were responsible for the lease and trading of the 91-room hotel operating as Pocotel at 139-141 West George Street. It was formerly occupied by the Park Inn by Radisson.

The administration of both businesses was caused by unsustainable cash flow difficulties stemming from poor trading and low occupancy levels caused by the Covid pandemic. 

The hotel has now closed, trading has been halted and all 14 remaining staff made redundant. The joint administrators will market the lease for sale.

Mr Forsyth, restructuring partner with Azets, 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.

“We will focus on providing every assistance to the staff by helping them register any claims to the Redundancy Payments Office and accessing support services from PACE. 

“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. 

“As such, we would encourage interested parties to contact the Glasgow office of Savills as soon as possible.”

Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.