Investors in George Best hotel lose £4m

Judge grants sale of failed project

INVESTORS in bedrooms at the stalled George Best Hotel are set to lose up to £4million after a High Court judge ruled the property can be sold.

Madam Justice Mcbride granted an order for sale of the Belfast building to administrators appointed to the failed city centre project.

However, she also acknowledged the serious financial impact on many of the people who put their lifetime savings into the boutique hotel scheme.

The judge said: “The court obviously had immense sympathy for the bedroom investors who stand to lose their entire investment without any return.”

In April 2020 the company behind the hotel being built at Donegall Square went into administration.

By that stage people had invested in rooms in the hotel, with the expectation of getting an income once the doors were opened. The court heard around £4million was received from them and used to fund the development.

But the main lender, Lyell Trading Limited, was ranked as having first charge over the property. The administrators sought legal permission to sell the building in order to fulfil its duty and make a distribution to secured or preferential creditors.

More than 20 bedroom investors filed evidence, with adjournments sought to investigate the potential for a third party investor to complete the development of the hotel. They stated that an investor firm had expressed substantial interest in making a commercial proposal that would benefit all stakeholders.

Personal stories were submitted by 17 investors describing the impact the loss has had on their lives and futures.

Ultimately, however, Madam Justice Mcbride decided to grant the administrators’ application for permission to sell.

She stated: “The court has given ample opportunity for attempts to be made to secure the best return for the creditors as a whole.”

PROPOSAL Belfast hotel