Plans to redevelop are fast tracked because of Covid-19 impact on tourism industry.
In a statement, the hotel's management announced that all bookings at the hotel will be cancelled. Team members are being actively supported with an outplacement service helping everyone affected by the decision. It added that both staff and clients are being notified and appropriate arrangements are being made.
It means that the hotel will not be opening in its previous format once lockdown restrictions are lifted. The hotel and restaurants will remain closed while a development plan is submitted and the redevelopment takes place. A pre-application plan will be submitted to planners this month for comment.
The Golf Course is now operational and the Golf Club will continue to operate under whatever lockdown restrictions are imposed. The Health and Leisure Club is currently closed and its future is under review.

WATCH: Last Blue Islands plane leaves Jersey
New woodland for Alderney's 80th Homecoming
Guernsey States 'in talks' with easyJet
Guernsey's airline Aurigny takes on six new First Officers
Call for more transparency over Guernsey Electricity's charges
Guernsey Police investigate 'unexplained death' in St Peter Port
Senior Guernsey politician to stay on committee during police investigation
Iconic Guernsey restaurant to close before Christmas