A country hotel has been put up for sale after its owners went into administration, despite pledging to invest £5.5m into the business.

The historic 93-bedroom Gilsland Hall Hotel, near Brampton, was bought by Northern Powerhouse Developments, based in Elland, near Huddersfield, from the Co-op in December 2017.

In May last year, the company announced plans to develop the hotel, known locally as Gilsland Spa, including the addition of a swimming pool and self-catering holiday cottages.

However, this July Gilsland Hall was placed in administration and has now been put up for sale by Christie and Co for £1.55m.

Philip Duffy and Sarah Bell, of Duff & Phelps, were appointed interim managers of Northern Powerhouse Developments after it was also placed in administration.

Manchester-based CG and Co have been appointed as administrators of Gilsland Hall.

The developments followed a joint investigation into the financial dealings of Gavin Woodhouse, the owner of Northern Powerhouse Developments, by ITV News and The Guardian.

Subsequent reports suggested the company had overvalued the price of the hotels in its chain of more than 10. In July, two of the company’s senior advisers quit following the allegations.

NPD has said it strenuously denied any wrongdoing and insisted it was the victim of a targeted and unjust media campaign.

The hotel has 140 acres of grounds on the border between Northumberland and Cumbria and also has seven houses on site, including two disused cottages, two staff houses and a large derelict villa.

When the investment was announced last year, it was welcomed.

Dan Newrick, chairman of Upper Denton Parish Council and treasurer of the Campaign to Open Gilsland Station, said it was a blow that the work had failed to materialise.

“My hope for the hotel would be that somebody comes in and invests some money,” he said.

He said currently the facilities at the hotel were tired and without investment it was unlikely to do more than cover its own costs.