Historic hotel to be sold after loan issue

Buxton Crescent Hotel's owners defaulted on a multimillion-pound council loan repayment in May.

A luxury spa and hotel in Derbyshire that defaulted on a £11.4m council loan has been put up for sale and will be sold "debt-free", its operator says.

Ensana, which runs the Buxton Crescent Hotel in Buxton said it had been put on the market on Wednesday along with the Old Hall Hotel.

In May this year, finance reports revealed the company behind the Buxton Crescent Hotel defaulted on a multimillion-pound loan repayment to Derbyshire County Council.

Four months on, Ensana said the properties were "being offered debt-free with the owners confirming that all existing loans on the hotels will be repaid."

They added all hotel staff were working on a "business as usual" premise as there was "no change whatsoever" in the day-to-day operation of the hotels.

Both properties have been put on the market via real estate company CBRE, said Ensana.

The Grade I listed building was constructed in the 1780s by the fifth Duke of Devonshire

The 18th Century hotel reopened in 2020 after a lengthy renovation that saw the original projected cost of £32m soar to £70m.

Funding towards the project was provided by a number of bodies:

• £23.8m grant from the National Lottery Heritage Fund

• £13.4m contribution from Derbyshire County Council

• £2m grant from D2N2 Local Enterprise Partnership

• £600,000 grant from Historic England

• £1.1m contribution from High Peak Borough Council

But finance reports from May revealed that Buxton Crescent Ltd told Derbyshire County Council in March 2023 it "may not... be able to commence" loan repayments worth £11.4m due to the "hotel’s weaker than anticipated revenues and high cost of energy".

They added the council was "in talks" with the company to "explore options" in protecting its investment as well as supporting the "viability" of the hotel.

Buxton Crescent Limited is jointly owned by CP Holdings and the Trevor Osborne Property Group Ltd, with the hotel operated by Ensana.

Freehold of the buildings is held by High Peak Borough Council and Derbyshire County Council.