The Glenburn Hotel on the Isle of Bute has filed for administration.
Originally built in 1843 on a hilltop location overlooking Rothesay, Scotland’s first ‘hydropathic’ hotel opened in 1892.
It was extensively refurbished in 2016 and features around 121 guest rooms, a ballroom, restaurants, bars, a terrace, conference facilities and terraced gardens. There are also three cottages located within the grounds of the hotel.
The hotel had traded briefly since the start of the first lockdown in early 2020, but has been closed since November 2020 with staff initially being placed on furlough.
The administration has been caused by significant operating costs, coupled with the fall in revenue due to the pandemic, leading to unsustainable cash flow problems.
All remaining staff will be made redundant with immediate effect and joint administrators Stuart Robb and Chad Griffin from FRP Advisory will now commence liaising with employees, the Redundancy Payments Office and other agencies to minimise the impact on staff and to ensure their claims for redundancy are processed as quickly as possible.
Joint administrator Stuart Robb, partner with FRP Advisory, said: “Unfortunately, having explored all its options, the hotel was unable to survive the significant fall in revenue caused by the pandemic, while still having to meet significant maintenance and running costs.
“We will now focus our efforts on assisting employees, many of whom have worked at the hotel for many years, to submit their claims for redundancy and other sums due to them whilst preparing to market and sell the hotel.
“While this is a sad day in the Hotel’s history, this is an outstanding opportunity to acquire an iconic hotel on one of Scotland’s most accessible islands.”
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