A Monifieth hotel could be transformed into a £2.7 million luxury apartment block after its owners decided to permanently close the business.
The town’s Panmure Hotel will close on New Year’s Day 2018 after low occupancy rates and rising costs left the owners with “no other option.”
It will close immediately after it hosts its annual — and this time final — Hogmanay bash.
The hotel, which contains 13 rooms, two bars, a conservatory, a restaurant, and a function room, is located on Tay Street and overlooks the first green of the Monifieth Golf Links.
Co-owner and managing director Charlie Duthie, said it was the logical step to take after the hotel’s performance showed no signs of a turnaround after years of losses.
“It has been a very difficult decision,” he said. “But we were in a position where we had no other choice unfortunately.
“We knew it was going to be tough when we took it on but low occupancy rates and rising costs have led to the decision.
“The current owners and former two tenants tried hard in the past seven years to turn the business around and invested in refurbishment of the building, but this has proved to be uneconomic, and has incurred substantial losses.”
The hotel was refurbished just three years ago, shortly after Mr Duthie became joint owner.
Plans have now been submitted to convert it into nine luxury apartments.
He added: “These plans (for luxury apartments) subject to approval will create jobs in the town, and add to the beautiful surroundings, complimenting the area, and bringing the building back to its former graceful splendour.
“We are going to give it a massive send off with the Hogmanay party, which has always been popular and traditionally sells out fast.
“It was always the plan to host the party but this time it will be the final one.
“Historically, the hotel has struggled to make a profit, basically over the past 10 years.
“Obviously it was never our intention to have to do this but the positive thing is that we are still investing in another way.”