NEWCASTLE’S Grand Mercure Apartments will close on Friday following the appointment of McGrathNicol as receivers and managers of the Hunter Street hotel.
Jason Preston from McGrathNicol said the first option was to sell the business and 37 apartments as a hotel and the other option was to sell the apartments and make it a residential block.
Owners of the remaining apartments are on a strata title that is likely to become a residential building and the ground floor Pinnacle restaurant will close.
Mr Preston said they would try to keep some of the Accor staff at the site in the short term.
The apartments are housed in the former Latec House building that was transformed from a derelict site in 2009.