Over 400 jobs at risk as firm owning six hotels in Scotland collapses

More than 400 jobs are at risk as a company which owns six hotels in Scotland has collapsed into administration.

Strathmore Hotels Ltd, which has a head office in East Kilbride, owns and operates a group of eight hotels across Scotland and northern England.

The firm runs the Alexandra Hotel in Fort William; the Ben Nevis Hotel & Country Club in Fort William; the Ben Wyvis Hotel in Strathpeffer, the Nethybridge Hotel near Aviemore; the Royal Hotel in Oban; and the Salutation Hotel in Perth.

Administrators from Interpath Advisory said the company had been under “sustained creditor pressure” for several months, resulting in a winding-up petition in July.

As a result, the decision was made to seek the appointment of joint administrators, who will now assess and review options for the business moving forward.

Customers are advised that all eight of the hotels will continue to trade while the administrators review the options available to them. They are urged to direct queries to Strathmore Hotels in the usual manner.

All of the company’s circa 410 employees will be retained by the administrators to support them.

Alistair McAlinden and James Dewar from Interpath were appointed joint administrators to the firm on August 11.

Alistair McAlinden, joint administrator and head of Interpath in Scotland, said: “The hospitality sector has faced a number of significant challenges in recent years, including rising operating costs, inflationary pressures, workforce shortages and changing consumer spending patterns.

“Unfortunately, Strathmore Hotels has not been immune to these headwinds and has also experienced sustained financial difficulties, resulting in the appointment of the joint administrators.

“Our immediate priority is to ensure continuity across the business. We recognise that this news may be concerning for employees, customers, and suppliers.

“However, we would like to reassure all stakeholders that it is very much business as usual across the portfolio, and we encourage guests to continue visiting the hotels as normal while we explore the best possible outcome for the business.”