The Mount Murray Hotel is to close for good after trading for more than 20 years, and just over a year after a major fire at the complex.
The hotel will shut its doors for the final time on 6 February with the loss of more than 30 jobs.
The majority of the country house style complex, including all but nine bedrooms, was destroyed in a huge blaze in November 2013.
Staff were informed of the closure today.
Mount Murray Golf Club will remain open and customers who have wedding or function bookings will be contacted to discuss alternative arrangements, including for some parties, transfer to the golf club.
Gym memberships will be refunded.
Managing Director at Mount Murray David Lyons said: "given the protracted negotiations with the company’s insurers, lasting over a year and the prospect of a further year at arbitration the company was forced to agree a settlement."
He went on: "A further nail in the coffin was increasing energy costs which proved crippling for the business."
The Mount Murray Hotel and Leisure Club was developed by Albert Gubay in the 1990’s.
Mr Gubay, who is off-Island at moment, has been suffering from ill health.