Customers sat down to breakfast at the County Hotel for the last time on Monday, July 25.
The 40-bed art deco hotel on North Parade was put on the market by Christie and Co in 2019 for a cool £1million.
It was built in the 1930s, it offered 40 bedrooms with en-suite, TV, hairdryer and tea and coffee making facilities.
The agent said coach tour bookings went well into 2020, with net sales of £578,598 for the year ended October 31 2018 and further a net income of approximately £19,500 per annum from a mobile phone mast.
More recently the hotel has run on a bed and breakfast basis only, with the news it had been sold breaking in a video on social media filmed by a member of staff.
Currently there has been no indication from the new owners of plans for the hotel or the date of the auction.
However booking,com are not taking reservations.
The uncertainty soon prompted rumours that the new owners had a contract with SERCO which provides vital community accommodation and support services for people while their asylum claim.
This was denied after concerns were raised, including from the chairman of Skegness Area Business Chamber Bob Walker.
Mr Walker contacted MP for Boston and Skegness Matt Warman, who replied there were “The County Hotel is not currently proposed to accommodate asylum seekers nor are there any other hotels in Skegness proposed for use at this stage.“
However it was not denied that currently there are at least two seafront hotels with asylum seekers.
Concern about asylum seekers gathering in groups on the seafront was first raised at a Skegness Town Council meeting in February
The Home Office described the situation as "unacceptable" but "a necessary short-term solution to the global migration crisis" – and it was understood it was a temporary situation and ELDC was looking for more suitable accommodation.
In response to the latest concerns, a Home Office spokesperson said: “The use of hotels to house asylum seekers is unacceptable and we are working with local authorities to find appropriate long term accommodation across the United Kingdom.”