SCARBOROUGH’S famous Royal Hotel has been bought out of administration by subsidiaries of the Britannia Hotels Group.

The town’s Clifton Hotel has also been bought, after ERH (Scarborough) Limited, which owned both hotels, went into administration in August.

The Royal Hotel, built in the 1830s and stayed in by Prime Ministers Winston Churchill and Harold Wilson, was bought by Britannia subsidiary Ambassador (East Cliff) Limited, and the 70-bedroom Clifton Hotel, where First World War poet Wilfred Owen wrote one of his first poems "Miners", was bought by Britannia Hotel Wolverhampton Limited.

Joint administrators David Whitehouse and Sarah Bell of Duff & Phelps said all jobs - 77 at the Royal Hotel and 30 at the Clifton Hotel - were saved as the hotels were sold as going concerns.

Mr Whitehouse said: “Whilst trading conditions in the hotel and leisure sector in the UK remain difficult I am pleased to announce the successful sale of these two hotels. The sale to an established hotel operator will now provide certainty to both employees and surrounding businesses.”