THE five-star hotel which once hosted Lady Diana, Chris Evans and Mick Jagger has closed its doors for good.

The Byblos hotel in Mijas Costa – once one of the Costa del Sol’s most exclusive haunts – will no longer take bookings.

It comes just days after a mystery blaze destroyed the protected Casa Harnden – built in 1959 by American architect Peter Harnden.

Staff at the Byblos hotel had not been paid for 13 months, digital TV wasn’t installed and the chef was forced to buy yoghurt from Mercadona to serve up for breakfast.

The financial situation for the Aifos-run hotel was so dire that Mijas council was forced to repossess the building.

Aifos has blamed the Bank of Scotland for the job losses and the hotel’s deterioration. The bank was slammed for ‘failing to complete on a loan contract’ worth 35m euros.

“It’s a real shame to see how they have neglected a hotel that Julio Iglesias used to come to by helicopter from his estate in Ojen,” explained former employee Jose Luis Flores.

Meanwhile, the Mayor of Alhaurin has quickly quashed any rumours that listed building, the Casa Harnden, was deliberately torched.

Accusations were rife that it had been burnt down to make way for a new building complex on the site.

However, Joaquin Villanova, refuted the claims. “It is completely untrue that anything will be constructed in this sector,” he insisted.

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