Fears that Edinburgh celebrity haunt The Point hotel may shut down

Published on Thursday 12 November 2009 21:21

IT is the famously "minimalist" building credited with helping transform Scotland's capital into a cutting-edge tourist destination.

The Point Hotel, which replaced a rundown department store in Edinburgh's Tollcross area, swiftly became one of the most fashionable places in the country to rest your head.

But the future of what was once judged one of the 50 most fashionable hotels in the world has been thrown into doubt after being suddenly put up for sale.

The Point, which scooped a number of awards for its celebrated designer, the late architect Andrew Doolan, has gone on the market after its owner, property firm Applegrove, went into administration.

The hotel, run by leading operator Accor, could see its famous design being changed or may even be closed down. The Point, which was a favourite with visiting celebrities and for its spectacular views of Edinburgh Castle, is set to be at the centre of a bidding war after being put on the market for offers over 15.75 million.

It is the second fashionable Edinburgh hotel to be put up for sale in a matter of weeks after the city-based licensed trade giant Festival Inns decided to dispose of the Hudson, in the West End.

Property investors and hotel operators are expected to vie for the chance to snap up the building, which is just outside the capital's financial district and regularly used to put up guests attending the city's festivals.

Liam Gallagher, Kylie Minogue, Boy George, Sean Penn and Graham Norton are among those who have stayed at The Point over the years.

Mr Doolan, who died aged just 52 in 2004, raised the funds himself to bring about his vision of transforming the former Co-op site on Bread Street into a top-class hotel, unveiled in 1995.

It was believed to be the first designer hotel to be created outside London, and Edinburgh's first "boutique" hotel.

Although all 139 of its rooms were refurbished four years ago, shortly before it was taken over by Accor, the hotel is largely unchanged from when it opened.

Agents Jones Lang Lasalle, who are handling the sale on behalf of Applegrove's administrators KPMG, say they have been inundated with inquiries about the "iconic" building since it went on the market earlier this week.

Spokesman Alan Creevy said: "The Point is presently branded as a Mercure Hotel but purchasers are free to decide whether to continue running the hotel under the existing management contract or to offer for the hotel without the management contract.

"There's nothing to stop anyone coming in and carrying out their own refurbishment if they wanted to."

Pete Irvine, author of the best-selling Scotland the Best guide, said: "The Point made a huge impact when it opened because its architecture was so creative and design was ahead of its time.

"It was never the cosiest of places and wasn't the kind of hotel where you could take the family or go with kids.

"You had the feeling of being on a movie set when you went there at the time and although there have been thousands of places like it to open since then, it has still remained fashionable."