Negotiations with a potential new owner of Broad House Hotel in Wroxham have broken down but the luxury hotel's administrators are still hopeful a sale will go through in the near future.

Administrators Baker Tilly were called in by owners Laccone Ltd n in December after a previous agreement to repay debts of �3.8m was breached.

The 16th century nine-bed hotel - which won a number of awards including small hotel of the year at the 2009 Enjoy England Awards for Excellence - initially continued to trade normally under the administrators' control and all Christmas functions were honoured.

However, the hotel was shut down after the holiday period and all 36 staff were made redundant.

Baker Tilly entered into negotiations with a potential new owner who had the intention of reopening the hotel, which was put on the market for �2m.

Negotiations had initially progressed well and the sale was hoped to have been completed but due to access issues relating to the use of Wroxham Broad, the purchaser has withdrawn from negotiations.

Commenting on the situation, joint-administrator Nigel Millar said: 'It is a major disappointment that the negotiation for the sale of the hotel did not have the outcome we had been hoping for. We are now in the process of remarketing the property.

'We still hold out hope that a sale may be achieved. However, it is looking unlikely that it will re-open for business in the near future.

'We have already been in contact with those who had booked weddings and other events to update them on the current position.'