Rory McIlory, Graeme McDowell and Keiren Westwood were hoping to avail of "highly tax-efficient" opportunity..
Northern Irish golfers Rory McIlroy and Graeme McDowell and Republic of Ireland goalkeeper Keiren Westwood have seen the UK hotel investment scheme they backed two years ago enter administration.
The sports stars were among the more than 100 investors – also including multiple Olympic gold-winning British rower Steve Redgrave – who pumped a minimum of £50,000 (€58,000) each into the Park Regis Birmingham Limited Liability Partnership, sold as a tax-efficient incentive to redevelop the derelict Auchinleck House as a hotel.
The £48m (€55.6m) investment scheme was marketed to investors as "highly tax-efficient" as it took advantage of the the UK's Business Premises Renovation Allowance (BPRA).
Due to its LLP structure, investors aren't held personally liable for debts the business can't pay.
The Irish Independent understands that the scheme ended up in administration when not all of the signed-up investors put in their promised capital on time, causing it to default.
With the scheme entering administration on August 17th, the Park Regis Hotel has since been sold to operating company Staywell Hospitality, for £23m, leaving investors with a loss.