Administrators were called in to the Holiday Inn at Westhill and the Holiday Inn Express on Aberdeens Little Chapel Street as both locations were put up for sale.

Iain Fraser and Tom MacLennan, partners at FRP Advisory, said the hotels would stay open and that no “immediate” job losses were expected as a result of the collapse.

It comes just after the company behind the Albyn bar and both Holiday Inns next to Aberdeens Exhibition and Conference Centre were also put up for sale by administrators.

Both European Development Company (Westhill Hotel) Ltd and European Development Company (Hotels) Ltd have went into administration striking a blow at directors Ivor Finnie and Alan Wallace who have involvement with several other well known venues in Aberdeen.

The organisations employ 136 staff of which 117 are Aberdeen based.

Administrators blame the situation on “severe cash flow problems” driven by the oil and gas downturn. It was also noted that new hotel openings in the city have driven down room prices as fierce price competition between hotels takes place.

Prior to the oil price crash investors seen an opportunity to take advantage of rocketing hotel prices due to high demand and low availability and planned several new hotels in the city with thousands of additional rooms. However after the oil price crash occupancy rates have dropped significantly and room prices have plummeted.

Recent reports on the city’s hotel trade have seen a short term recovery in occupancy levels and room rates.

Ian Spinney who is the spokesperson for administrators FRP Advisory advised Oil and Gas People that it is “Business as usual” for the hotels and advised customers that have already made bookings not to worry

Joint administrator Mr Fraser said: “The administration presents a rare opportunity to acquire quality hotels with an established trade and reputation in their local markets.

“The hotels could appeal to an existing hotel operator looking to expand their business, or an entrepreneur keen to enter the hospitality market by acquiring quality properties in prime locations. I am pleased to say we’re in advanced discussions for the sale of the Edinburgh hotel, and urge interested parties to contact us as soon as possible with respect to the Aberdeen properties.”