Staff at the DoubleTree by Hilton at Aberdeen beach are to be made redundant after its owner went into liquidation.
The Ability Group blamed the “exceptional circumstances beyond the company’s control” of the coronavirus pandemic and the oil market slump.
The 168-room hotel will remain closed, with all staff – understood to be about 90 – made redundant.
Its owners said it was “saddened” by the situation but that there was no alternative to the liquidation.
Dozens made redundant as hotel closes
Martyn Giles, head of asset management for the Ability Group, said: “The huge impact in the slump of the oil market in recent years and most recently Covid-19, DoubleTree by Hilton Aberdeen City Centre is no longer a viable business and is being placed in liquidation with immediate effect.
“The Ability Group have explored every avenue to keep the hotel open for many months now and retain the loyal team members but ultimately and to our extreme disappointment this has proved not be possible.
“Every team member has been written to personally and provided detailed information on the whole process.”
He added: “We understand this is very upsetting for the team, many of whom who have worked at the hotel for a number of years and we would like to thank them for their service and wish them well for the future and stay safe and well in these difficult times.”
Hilton said: “We are saddened by this news and wish the team at the hotel well.”
The statement added that Hilton appreciated it was a “very difficult time”.