'Crippling' energy costs cited in hotel closure decision

The Mount Murray hotel boss says he's confident approaches will be made from prospective buyers interested in the site.

Managing director David Lyons has confirmed a settlement reached with insurers 14 months after a huge fire, will not cover the cost of rebuilding the complex.

Its owners claim they were forced to agree an 'unsatisfactory' settlement to avoid another year of arbitration.  

The hotel and country club will close permanently next Friday (6 Feb) with the loss of 30 jobs. Only the golf club will remain open.

Mr Lyons says increasing energy costs also contributed to the decision to shut the hotel for good.

He says together, the two factors have sealed the fate of the business:   

Pictured: Fire engulfs the hotel 7 November 2013