The Roebuck Hotel on Baldock Street in Ware, Hertfordshire has been closed by its new owner for "economic reasons".
The property was acquired by St James’ Hotel Management Ltd in March after former owner Forestdale Hotels Group, part of Akkeron Group, went into administration.
However, head of corporate affairs Simon Porter said St James’ Hotel Management Ltd was not prepared to operate it.
He confirmed that some of the staff had been made redundant, but said others had been given new jobs within the St James’ group.
According to a report in the Hertfordshire Mercury, Porter said the property would be unable to compete with a proposed new Premier Inn on Marsh Lane.
“The Roebuck was a full service hotel,” he said. “Our business was struggling anyway. They [Premier Inn] operate on a totally different financial model.
“It’s going to be competing against a national brand of hotel which would be able to compete very strongly against it, and further undermined the business that was already there.”
Akkeron Group and developer One Property Group had hoped to demolish the Roebuck and build 14 houses on the site.
An application was reportedly rejected by councillors when it went before East Herts Council last July, but in January an appeal hearing took place over the plans.
Porter told the Hertfordshire Mercury that the group was still in contact with One Property Group and was awaiting the outcome of the appeal before deciding the future of the site.