Hotel staff are said to be “very upset” after learning they are to lose their jobs a month earlier than initially feared.
The Moorfield Hotel in Brae had already been due to close in September – but staff now say it is to shut its doors next month after a contract extension was dropped.
Total, which runs Shetland Gas Plant, had been expected to extend its contract for a month, allowing the hotel to continue until 9th September.
Now, however, BDL, which owns the hotel, said the extension was no longer wanted.
BDL director Stuart McCaffer said it was “sad news”.
“Total had previously requested a month’s extension to the contract but they have today informed us that they no longer want the extension,” he added.
“Consequently the Total contract comes to an end on 5th August and the hotel will close shortly after that.”
“The staff have just been informed of this and everyone at the hotel is very upset that the redundancies have been brought forward by a month.”
Last month, the hotel’s imminent closure was described as a “devastating blow” for the 45 workers.
A statement from owners BDL Hotels at the time said: “Sadly, Total has not renewed its contract with us, and we have still not been formally advised where the Shetland Gas Plant workers will be moving to.
“Given recent press reports quoting Total we believe that they will be moving to the Sella Ness temporary accommodation camp.
“Unfortunately, in these challenging economic times, there is virtually zero alternative business to fill the 100 bedrooms at The Moorfield Hotel and remaining open has become completely unviable.”
The hotel’s main function since opening seven years ago was to provide accommodation to gas plant workers.
It has faced problems since the Sella Ness accommodation camp was given the green light to remain open until the mid 2020s.
Earlier this year a Scottish government reporter ruled a Shetland Islands Council decision to turn down the Sella Ness request had been unreasonable.
BDL said it “remains incredulous” at the reporter’s move to overturn the SIC’s decision.
It said other accommodation providers in the area would suffer as a result.