A hotel which went into administration in 2019 has been sold to a developer that plans to bring new life back to its halls by converting it into student accommodation.
Hotel property specialists Colliers sold the former Bauhaus Hotel, in Langstane Place, on behalf of administrators RSM Restructuring Advisory LLP who were appointed in July 2019. The landmark property was sold for an undisclosed sum off of a guide price of £1.4million.
Aberdeen City Council approved the conversion of the former 39-bedroom hotel into 45-units of accommodation, which will house students from the University of Aberdeen, North East Scotland College and Robert Gordon University. The property’s conversion ties in with the local authority’s plans for a £4.8 billion regeneration of the city.
Paul Dounis, partner at RSM and joint administrator, said: “The sale and change of use of the vacant Bauhaus building will bring young people back into the heart of Aberdeen; enhancing the vibrancy of the city; creating jobs and supporting economic growth post-pandemic.”
The site is parallel with the city’s main retail thoroughfare of Union Street and close by to a wide range of restaurants, bars and live entertainment venues.
Robert Smithson, from Colliers’ Hotel Agency, who acted for RSM said: “We are delighted to have assisted RSM in finding a new use for this property. There has been a number of hotel asset sales taking place for alternative uses in recent times, this is the latest example of a hotel sale taking place with demand from both developers and hoteliers.”
Conversion of the property is expected to begin immediately.