Jumeirah Scotland Project on Hold

Jumeirah Group's plans to manage a luxury hotel in Scotland look dubious now after the developer, BLN Property Developments, went into administration on the $200 million project. 

The 26-story, 160-guest room Jumeirah Glasgow Hotel was scheduled to open in 2011 in time for the Commonwealth Games and the Ryder Cup golf tournament in 2014, and be a focal point of the rejuvenation of the Scottish city.

Construction work at the site was also delayed by a legal battle pitting retail owners on the land against the developer.

In addition to the hotel, the site would also have formed part of Glasgow's planned waterfront International Financial Services District.

"A six-star hotel would be fantastic for Glasgow, but in the current climate it’s unlikely it’s going to happen," Blair Nimmo, head of restructuring at administrators KPMG, told The Sunday Telegraph.

Jumeirah says it will continue to monitor the situation. "We are in regular contact with the developers and are monitoring the administration process to determine if the hotel development proceeds," the company said in a statement.

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