A LAKE District hotel has entered administration just over a year after unveiling the results of its £1.7m refurbishment.

The 78-bedroom Hydro Hotel at Helm Road, Bowness, was acquired by Squires Hotels in 2014 for a sum close to £3.75m but struggled with cash flow issues following the renovation project.

Phil Pierce and Paul Whitwam, partners at FRP Advisory, were appointed joint administrators earlier this month.

Mr Pierce said: “The Hydro Hotel is a beautiful building that is situated in one of the most stunning locations in Britain.

"The business has huge potential and our focus is now on working with the directors to secure a sale of the hotel and ensure the best possible outcome for everyone involved.”

A buyer is being sought to claim new ownership of the property and business, with all 32 employees being retained.

Doug Robertson and Philip Middleton of Irwin Mitchell Solicitors in Leeds are assisting.

The Hydro Hotel has conference and meeting areas, a restaurant and bar, and a ballroom that can hold up to 150 guests.

There are also leisure facilities including indoor swimming pool as well as staff accommodation.

Until a new owner is found, it will continue to trade and bookings will be honoured.

It was revealed last month that Colliers International was marketing the hotel with offers expected in the region of £2.5m to £2.75m.

Colliers' head of UK hotels Julian Troup said at the time: "It is an established and well-known hotel operating with a healthy trading base.

"Our instructions were that it should be priced to sell and consequently we are anticipating a favourable response to the marketing, particularly bearing in mind it is so rare to see a substantial Lakeland hotel with panoramic views coming to the open market."

He added: "The hotel was acquired by the current owners in 2015 and has been the subject of a circa £1.7m refurbishment to most of the public areas and a substantial number of the lake view bedrooms."