JD Wetherspoon is spending more than £1 million on reopening Jolly’s Hotel in Broughty Ferry as a pub, creating 40 full and part-time jobs.
The UK chain, which completed the purchase of the entire hotel and bars building, is to reopen it as a pub later this year, two years after the family-owned hostelry was placed in administration.
The property had been on the market with an asking price of £1.2 million for more than year after trading company Tay Hotels Ltd closed the doors in summer 2011.
The pub was one of the most popular venues among late-night drinkers in Broughty Ferry, boasting three public bars including a main lounge which also served as a mini nightclub for the burgh.
Wetherspoon had long been linked with Jolly’s but a deal for the operator to take charge of the premises initially fell through.
However, the chain later rekindled its interest as the asking price fell to £950,000 and it is understood that a deal was finally concluded in the autumn.
A spokesman for JD Wetherspoon said: “We can confirm that the company has purchased Jolly’s Hotel in Broughty Ferry and will be developing it into a pub.
“It has always been our intention to open the pub, although we have no opening date yet.
“Wetherspoons is committed to investing more than £1 million, creating 40 new jobs which will be a mix of full and part-time positions.”
Selling agents Christ + Co from Edinburgh said the ground-floor trading area will be completely refurbished in preparation for reopening later in the year.
Ken Sims, director at Christie + Co, said: “Broughty Ferry has always been popular for licensed leisure operators and there was substantial interest in Jolly’s Hotel.
“It was a popular hotel in a good location and we received a number of offers from both national and local operators.
“This sale proves that businesses in good locations can command strong prices, even in the current market.”
The sale price of Jolly’s Hotel was not disclosed but Christie’s said it was sold off with an asking price of £950,000.