Scalford Hall Hotel has closed and all 35 employees have been made redundant after the operating company went into administration.
But owner Colin Warburg hopes to reopen the hotel, which is on the outskirts of Melton, under a new management firm and re-employ all of the staff.
Mr Warburg told the Melton Times this afternoon (Friday): “The operating company went into administration on Tuesday and 35 staff have been made redundant.
“We are in the process of setting up a new company to take over the running of the hotel.
“I am disappointed the way it has gone but we are hoping to reopen the hotel next week.”
Mr Warburg took over the three-star hotel, which has 81 bedrooms, 11 meeting rooms and a large event room, in 2014.
The hotel also boasts two private dining rooms and permanent team building facilities on site, along with a pavilion whichg can host up to 600 guests.