THE company behind Glasgow's five-star Blythswood Hotel made a loss of millions of pounds last year, according to its most recent financial statements.

The Town House Company set up by Peter Taylor posted a loss of £4.8 million in 2014, despite the extra business brought to the city by the Commonwealth Games and golf's Ryder Cup at Gleneagles. .

Mr Taylor has recently sold the business, including both the Blythswood Hotel and the boutique Bonham hotel in Edinburgh, to a major US investor for an undisclosed sum.

Profits for 2014 were said to be £2.7m on turnover of £11.9m, although these were eaten up by £9m of "exceptional" costs, thought to include the writing-off of an inter-company loan.

The rebirth of the Blythswood, formerly the Royal Scottish Automobile Club, has been plagued with difficulties, and financial bad luck.

The Townhouse Hotel Company became stretched as the £25 million redevelopment of the hotel struggled, although no expense was spared in its construction.

Among the opulent features included in the renovation were almost 10,000 square feet of Harris Tweed for its interiors the biggest design order of the fabric since the QE2 was built 40 years before.

The collapse of a wall - and of a construction firm - delayed its opening by two years.

The deal, which sees the hotel bought by America's Starwood Capital Group, is expected to earn Mr Taylor millions.

Writing to shareholders, Mr Taylor said: "These have been very tough years but I am pleased to say that our group is now in a very strong position.

"The challenges for the group remain the continued delivery of the highest level of service and to maximise the trading opportunities that both Glasgow and Edinburgh have to offer in 2015 and beyond.

"We move forward into 2015 with well-founded optimism."