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07/05/2013

'Six Star' Glasgow Hotel Plans Scrapped

It has been reported that plans to build a 'six star' hotel in Glasgow has been scrapped.

According to ArabianBusiness.com, the CEO of Dubai luxury hotelier Jumeirah Group confirmed the news.

The Jumeirah Glasgow Hotel was initially scheduled to open in the Scottish city in 2011 and was viewed as a key development to the rejuvenation of the area.

Estimated at $200m, the glass-fronted, 26-storey hotel was said to include 160 luxurious guest rooms, 85 services apartments, an infinity pool and Scotland's largest ballroom.

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However, the project was faced with numerous delays and problems which resulted in the hotel's developer entering administration.

Speaking to Arabian Business, Group CEO and President Gerald Lawless said: "The owner decided not to go ahead with it.

"Therefore they decided to cancel that project, and it won’t happen as Jumeirah. We’ve terminated with them. We had that option because it was already well beyond the start and finish date. That happens in management agreements - sometimes 25 percent to 35 percent of projects never see the light of day."

Mr Lawless added that the decision to not continue with the build was taken "six to nine months ago", and the group was still looking at other options for hotels within the UK.

The site of the proposed hotel is currently listed for sale at £125m.

(JP/CD)

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