The five-star Marcliffe hotel and spa in Aberdeen is to be turned into luxury homes after being bought by housing developer Stewart Milne.
The group released a statement confirming that it had acquired an option to buy the land, and that it planned to build premium residential homes to address the shortfall in executive homes within the city.
It has not yet submitted any proposals pending consultation with the city council.
In a statement, the hotel said that nothing would change until the end of November 2014, and all staff would continue to work until then.
It had been planned that the hotel would receive a £50m investment in 2008, including the addition of 200 bedrooms and an international conference centre, but the bulk of the plans ultimately did not go ahead.
It's been a good year for hotels in Aberdeen however: in 2013 it saw the highest growth in revenue per available room (revpar) of any UK city, and in the same year was named the happiest city in a UK government survey.
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