A hotel that "currently operates very profitably" and has a government accommodation contract has been put up for sale after its owner fell into administration.

The Dalkeith Hotel is described as a well-presented town centre aparthotel, with a prominent high street position.

UK property firm Graham and Sibbald have brought the property at 152 High Street, Dalkeith, to the market on the instructions of Ian Wright and Scott Milne, Quantama Advisory Limited, joint administrators of Dalkeith Apartments Ltd.

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The Dalkeith Hotel has been extensively refurbished and provides 33 letting rooms as well as a coffee lounge, breakfast/dining room and function room.

The Herald: The restaurant interiorThe restaurant interior (Image: Graham and Sibbald)

On the ground floor there is a 60 cover restaurant which is currently leased to Slumdog.

The owning company of the Dalkeith Hotel has fallen into administration with the hotel currently operating under management.

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Peter Seymour, director at Graham and Sibbald, said: “The Dalkeith Hotel currently operates very profitably with a government accommodation supply contract.

"New owners, if they wish, will be able to continue this contract with the possibility of the contract term being extended."

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He continued: "There is the opportunity to further develop the hotel with the conversion of existing accommodation to an additional eight bedrooms.”

Dalkeith is six miles south east of Edinburgh city centre close to the Edinburgh bypass "affording accessible connections to the central Scotland road network".

Graham and Sibbald are inviting offers around £3 million for the Dalkeith Hotel.