Art hotel developer hit by £260,000 loss

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The company behind plans to turn the former Odeon cinema in Clerk Street into an art hotel has suffered a financial loss.

Duddingston House Properties, which was also chosen by the council last year to develop the old Royal High School into a hotel, recorded a £263,579 loss in the year to the end of November 2010.

The loss comes on top of a £694,527 loss suffered in 2009.

The figures have resulted in the Edinburgh-based company’s independent auditor, Geoghegans, to say that there is a “material uncertainty which may cast doubt over the company’s ability to continue as a going concern”.

Within notes to its financial statements, the company admits to being “dependent on the ongoing support of the bank and its creditors to meet its debts”.

However, the company’s statement also says it is expected to have “sufficient resources to meet its debts and other financial obligations as they fall due”.

Director Bruce Hare has also pledged to support the company.