| 12.2°C Belfast

Highways Hotel put on sale for £800,000

A hotel which belonged to a collapsed property firm has now gone on the market on the instructions of administrators.

The former Highways Hotel in Larne has an asking price of £800,000 after being put on sale by KPMG.

It was operated by Sonah (NI), which was placed into liquidation in October owing more than £1m. Sonah bought it from the Topping family.

The hotel’s main creditor when it closed in July was drinks firm Diageo, which had a £300,000 mortgage over the lease and drinks licence.

Sonah (NI) was controlled by company director Adrian Nicholl, also a founder of Network Trading Group.

Network Trading Group went into administration in October after borrowing £42.5m from Bank of Scotland in Ireland.

It owned properties in Culcavy, Belfast, Lisburn, Larne, Dunmurry and Portadown. But at the time of the group’s administration, Mr Hansen said the value of the properties would be lower than the bank debt.

Weekly Business Digest

Margaret Canning’s selection of the must-read business stories straight to your inbox every Tuesday morning

This field is required

The three-storey Highways Hotel has 36 bedrooms.

A spokesman for commercial property agents Osborne King said the hotel was in “good condition, requiring only some redecoration”.

However, most fixtures and fittings, including kitchen equipment, have been removed.

Networking Trading Group and Sonah were both based in Banbridge.

Small creditors of Network Trading Group, which was set up in 1997, were owed around £124,000.

The former hotel also has a reception area, restaurant kitchen, bar, two conference rooms and a function room holding 400 people.

Osborne King said the “prominent situation and location” of the property could make it appropriate for development such as a residential home or care home, subject to planning permission.

They were agents in the recent auction of the hotel formerly known as the O’Neill Arms in Toomebridge, part of a portfolio of hotels owned by the now collapsed McLarnon group.

The hotel was bought at auction by glass company Camden Group for £750,000, and reopened as the White River Hotel.