The operators of the Ardsley House Hotel on the outskirts of Barnsley have launched a consultation on whether to close the 74-bedroom hotel after the summer.
St James’s Hotel Group acquired the three-star hotel after the collapse of the parent company Forestdale in March this year.
The hotel, which employs 50, is making ‘significant losses’ that threaten its future as a viable business.
“Unfortunately, the hotel is making very large losses despite the efforts of previous operators and ourselves. We have formally commenced a period of consultation with staff and management to fully investigate every option open to us and these do include the full closure of the business,” said Sean Brookes, group operations director of St James’s Hotels Group.
The operators have confirmed that all staff and customers who may be affected by the decision have been made aware of the process.
“We are very aware that this is a place of work to a great many loyal staff and we are ensuring that we take every step to include the employees in our review of the strategic options for the business.”