A FIVE-STAR Scottish hotel has been bought out of administration after going bust with more than £4 million in debt.
The Dunalastair Hotel at Kinloch Rannoch, which dates back to the 1700s, continued to trade despite having administrators called in in April.
The hotel had been put on sale in September 2024 for £3.25m, which came after its directors told their bank that they would not be able to keep up with loan repayments.
Administrators later reported that: “While there was interest in acquiring the hotel, the level of offers submitted were below the asking price.”
The Courier reported that the hotel's debts to the bank totalled above £3.6m, while some £555,000 was owed to another 56 unsecured creditors and £127,000 was owed in tax.
Now, property agents Graham and Sibbald have announced the successful sale of the hotel to a neighbouring estate for an undisclosed sum.
The new owners are Loch Rannoch Estate Limited who own and operate the nearby Loch Rannoch Hotel, Spa, and Estate, the agents said.
Alistair Letham, a hotel and leisure consultant with Graham and Sibbald, said: “The Dunalastair Hotel Suites will be an ideal addition to the Loch Rannoch Estate Ltd with the ability to offer the spa and leisure facilities of the Loch Rannoch Hotel to guests at the five-star Dunalastair Hotel, as well as increasing the choice of restaurant options for guests at both hotels.
“Kinloch Rannoch is beautifully remote and yet very accessible being only a 15-mile drive from the main A9 road, making it a unique holiday destination.”
The hotel features 32 bedroom suites as well as a lobby lounge, bar and restaurant, and a first floor library lounge/private meeting room.
Loch Rannoch Estate Ltd is also looking to secure permission for a four-storey block of holiday apartments on Loch Rannoch.
While proposals were approved by Perth and Kinross Council, an objection from Scottish Environment Protection Agency (Sepa) – a statutory consultee – means SNP ministers will make the final call.
Graham and Sibbald were acting on the instructions from joint administrators Julie Tait and Stuart Preston, from Grant Thornton UK Advisory and Tax LLP.
