Tag: Aberdeen

Historic Aberdeen Ardoe House Hotel and Spa falls into hand of liquidators

Historic Aberdeen hotel to close with loss of 68 jobs

The Mercure Aberdeen Ardoe House Hotel and Spa in Blairs – three miles outside of Aberdeen city – is being placed into creditors voluntary liquidation after being hit by the oil industry downturn and restrictions put in place due to the coronavirus pandemic.

The 19th century Scottish baronial style mansion, set in 18 acres of parkland, suffered from the downturn in the local economy due to the collapse of the oil price and its knock-on effect on related businesses. A statement said the onset of the coronavirus lockdown earlier in the year added to cash flow pressures and the business proved unable to recover its normal levels of trading.

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Aberdeen and Aberdeenshire aren currently under level 2 restrictions set out by the Scottish Government.

Ardoe House Hotel has plunged into liquidation
Ardoe House Hotel has plunged into liquidation

The business, which had 120 rooms as well as restaurants, bars and a spa, employed a total of 68 staff. All have been made redundant.

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Read more: Old Course Hotel in St Andrews to close from today

Ken Pattullo, spokesman for business advisory firm Begbies Traynor, said: “Unfortunately, the hospitality sector has been among the hardest hit by the pandemic with the forced closure last spring having devastating consequences for the Ardoe House Hotel. With Aberdeen currently in Level 2 and coronavirus restrictions continuing, the directors felt the hotel was no longer viable and had no choice but to put the business into liquidation.

“In the face of ongoing uncertainty due to the health measures implemented to help combat the global pandemic, there was no way of saving the business and the jobs it supported; it is sad to see the closure of such a popular hotel.”

A Scotsman travel review of the hotel praised its “warm hospitality” and “spacious, restful and extremely comfortable” rooms. The hotel was built in 1878 for eminent surgeon Alexander Ogston and his family and incorporated many design features inspired by nearby Balmoral Castle. It was converted into an hotel in 1947.

Other luxury Scottish hotels have recently closed their doors, citing increased coronavirus restrictions.

The Old Course Hotel in St Andrews shut this week, while the Gleneagles Resort closed last week, with plans to remain shuttered until the end of January.

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Operator of Aberdeen hotel goes under with loss of 30-plus jobs

The company that operated the Hilton Garden Inn in the centre of Aberdeen has collapsed, with the loss of more than 30 jobs.

Thursday, 29th October 2020, 2:05 pm

The firm operated the Hilton Garden Inn Aberdeen City Centre. Picture: Alan Donaldson.
The firm operated the Hilton Garden Inn Aberdeen City Centre. Picture: Alan Donaldson.

It follows no buyers coming forward for the 100-bed hotel at St Andrew Street in the Granite City.

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Consequently, the hotel company experienced funding shortfalls at various times and required additional support from its shareholders to keep trading. “Despite a restructuring involving several of its key stakeholders and taking steps to reduce trading and overhead costs, the company was still unviable,” KPMG said.

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The hotel closed in March when Covid-19 lockdown measures were introduced in the UK, which had a major impact on the company’s cash position.

The directors couldn’t secure new funding and, despite marketing the leasehold interest in the hotel, the lack of sale meant the directors decided to place the company into liquidation.

At the time of the appointment, the company had 34 people who had been on furlough, and they have now all been made redundant as the business will not be able to reopen and trade.

Nimmo, joint liquidator and KPMG’s UK head of restructuring, said: “Unfortunately, following a prolonged period of challenging trading, lockdown was too big a challenge for the hotel in a local market already adversely impacted by oversupply.

Inevitable

“The current difficulties within the hospitality sector are well-documented and we have been working with several businesses recently with similar challenges. Regrettably, some insolvencies in this sector are inevitable, and we are working with all affected employees and the relevant government agencies to ensure a full range of support is available for all impacted employees.”

The news comes after a report published by PwC earlier this week found that key Scottish cities including Aberdeen saw “precipitous” declines in key hotel market metrics on the back of the Covid-19 pandemic, and the broader industry could take four years to recover. However, there was optimism from a PwC partner in Aberdeen that the city’s hotel market would recover again.

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