Mystery surrounds the future of the Strathearn Hotel after it failed to find a buyer at auction.
The 22-bedroom hotel on Wishart Place, which closed abruptly last May, had been marketed by Future Property Auctions with a guide price of £420,000.
Despite claims the hotel could be worth up to £1.8 million if converted into luxury flats,it failed to meet its reserve price at auction and a closing date for new bids was set for Friday on the company’s website.
However, Future Property Auctions told the Press: “The hotel is no longer for sale. The vendor wants it removed.”
Last month, Dunfermline-based City Hotels snapped up the Victoria Hotel on Victoria Road for close to its asking price of £850,000.
It was marketed by Colliers International which is also handling the sale of the Dunnikier House Hotel for a similar price.
The Strathearn Hotel closed amid a storm of controversy after it emerged staff, who were out of pocket, had been paid wages in loose change at Christmas.
A number of couples who had booked weddings at the popular hotel were also left high and dry.