A HISTORIC Christchurch hotel has been placed into administration.

Waterford Lodge on Bure Lane was originally the West Lodge to Highcliffe Castle.

The company which ran the 18-room hotel is now in the hands of Southampton based BDO LLP.

BDO said all the employees had been retained and the hotel was trading as normal with a view to selling it as a going concern.

David Smithson, BDO business restructuring director said: “Unfortunately the economic climate and difficult trading conditions have significantly affected the business.

“However, we are hopeful of securing a sale and the hotel will continue to operate whilst this is explored.”

The Companies House press office said the firm’s annual accounts and returns were overdue.

The hotel was sold to its current owners for £1.5million in 2007.

The website of the AA 3 Star Hotel, which is a franchise of the Best Western hotel chain, says it is run by the Hooper family. The Echo contacted the hotel management inviting comment but they declined to speak.

There are eight flats for elderly residents attached to the property. The residents are represented by their own company.