Airline tycoon seals deal for budget hotel

A BUDGET ­hotel in the centre of Glasgow, which crashed just a year after it was opened by easyJet founder Sir Stelios Haji-­Ioannou, is about to relaunch.

Loading Comments
Share
Print

The tycoon's easyHotel chain has snapped up the cash-stricken business in a multi-million deal which will see the converted 70s office block in Hill Street open its doors again in the coming weeks.

A consortium of businessmen spent up to £7million buying and converting Drummond House - above Italian restaurant Fazzi's - into a 126-bedroom no frills hotel.

They then paid a management company to run the city centre hotel and stumped up more money for a franchise deal, which ­allowed them to use the easyHotel branding.

But the combined fees along with spiralling conversion costs triggered huge debts and as a result the business went into administration in May.

One hospitality expert said: "It's a lovely hotel but everything which could go wrong did go wrong. Even their room rates were far too dear."

Today, however, it was revealed easyHotel bosses had won a bidding war and have bought the hotel for £2.3m.

It will reopen on February 1 with up to 10 staff. Booking can be made from 11am on Monday. Air-conditioned rooms are already being advertised by the new owners at prices below £20.

The sale was completed by Glasgow-based CDLH Leisure and Hospitality Surveyors on behalf of administrators with director Alan Creevy commenting that the debt-ridden hotel had attracted "fantastic" interest from potential buyers in the UK and abroad.

It led to more than 10 bids with Mr Creevy confirming Sir Stelios Haji-loannou's hotel chain had sealed a deal on Thursday.

He added: "The business will reopen and continue to trade under the easyHotel brand and while the financing of the project led to historic difficulties, we have no doubt that the business will prove highly successful under the direct control of easyHotel."

A spokesman for the new owners said: "We hope to reopen the hotel in the New Year with a room rate of £19 on a Sunday through to Thursday and £29 on a Friday and Saturday."

gordon.thomson@eveningtimes.co.uk

Travel

Commenting & Moderation

We moderate all comments on Evening Times on either a pre-moderated or post-moderated basis. If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

145440

Have you got a story?

Contact the news desk on 0141 302 6520 or email news@eveningtimes.co.uk
                A weekly round up of social highlights                
                               

A weekly round up of social highlights

                               

Cat's Eyes on Glasgow

                               

Why the Harlem Globetrotters weren't so slam dunking and making a boob at Debenhams

               
Free swim at a Glasgow Club pool for every reader - Click here

Entertainment

Lifestyle

Wedding
Gail’s Gab

Gail’s Gab

Gail Sheridan is a mother-of-one and wife to Tommy and she likes to get political with the hot topic of the week in her column Gail’s Gab.

            Michelle McManus            
                       

Michelle McManus

                       

Sussed in the City

                       

Why women are better at spotting so called 'bluff' when it comes to the independence debate.

           
Janice Bell

Janice Bell

You couldn’t make up half the stuff that happens to PA Janice Bell- some of the jams she gets herself into are worth a story or two.