The future of a luxury hotel in the city centre is uncertain amid ongoing administration proceedings.

We previously reported that Lloyds Development Limited, which owns the building of the new Virgin Hotels Glasgow, was forced to enter administration earlier this month.

Now, Virgin Group has hit out at the lender who rejected the hotel giant's offer to buy the property in a desperate bid to keep the new location open.

It is understood the sales process could impact employees, suppliers, and guests.

Glasgow Times:

A spokesperson from Virgin Group, said:  “Sadly, Lloyds Development Limited – the owner of Virgin Hotels Glasgow, which Virgin Hotels has a management contract with – has financial problems and is now in receivership.

“The Virgin Group has tried to help find solutions including offering to purchase the hotel at what it believed to be a fair price to keep it open and to ensure the team remains employed.

"If this proposal wasn’t accepted, Virgin also offered to keep the hotel open, splitting the costs of running the hotel for the next six months, whilst the owners sought a better price.

“Unfortunately, the lender has not accepted Virgin's offer and wishes to pursue a sales process.

"Virgin Hotels is very disappointed by this decision after the hard work everyone has put into the project and in particular because of the impact it will have on the team that works there."

The Virgin Hotels on Clyde Street was due to open in December 2022 but was delayed, opening in August 2023.

Three unfinished luxury suites were set to be completed and open next year: Sir Richard's Flat, named after mogul Richard Branson, Lady B's Flat and the Moroccan-inspired Kasbah Tamadot Suite.

The hotel also houses two restaurants, the Highyard Mezzanine and Commons Club Restaurant.

Two more venues, the Funny Library Coffee Shop and a whisky bar were due to open next year.

The spokesperson added: “Virgin Group remains committed to finding a solution. 

"Its offer to buy the hotel, save jobs, and complete the building or its offer to share the running costs for the next six months – which will ensure the team continues to be employed – will remain on the table for at least 24 hours. 

"If it purchased the property, Virgin would aim to finish the development of the hotel to create something the City of Glasgow can be proud of. 

"Virgin Hotels hopes the owner, lender and administrator will do what’s right to keep the hotel open.”

A spokesperson for the joint interim managers said: “Blair Nimmo and Geoff Jacobs of Interpath Advisory were appointed on December 1, 2023 as Insolvency Practitioners to Lloyds Developments Limited (“the Company”) which owns the property located at 246 Clyde Street in Glasgow.

"They have not been involved with the trading of the hotel at this address. The interim managers are disappointed for everyone involved with the insolvency.”

All Virgin Hotels are owned and managed independently and only Virgin Hotels Glasgow has been impacted by the administration process.

Virgin Hotels manages the property for the building owner under a standard hospitality management agreement.