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Newcastle hotel group snaps up two Scottish sites

Newcastle-headquartered hotel operator Cairn Group has stepped in to save two Scottish hotels from administration, safeguarding 125 jobs.

The 155-room Holiday Inn Express City Centre on Chapel Street in Aberdeen and the Holiday Inn Aberdeen West in Westhill, which has 86 rooms, were owned by Aberdeen-based European Development Company that entered administration in November 2016.

Joint administrators Tom MacLennan and Iain Fraser, partners with FRP Advisory, appointed JLL’s Hotels & Hospitality Group to sell the two sites separately or as a package from the previous owner, subject to existing franchise agreements with InterContinental Hotels Group (IHG).

Supported by Mincoffs Solicitors LLP and HSBC Bank plc, Cairn Group has purchased both hotels for an undisclosed sum.

Richard Warren, Cairn Group’s Finance Director said: “We are pleased to announce that Holiday Inn Express City Centre and Holiday Inn Aberdeen West have joined our portfolio.

“Aberdeen is still a busy thoroughfare for the corporate audience and as a result, the convenient locations of the hotels make them popular with visiting trade as well as tourism.

“It’s fantastic we’ve been able to retain all of the staff based at the two sites who are dedicated to providing excellent customer service and comfortable stays for guests.”

Iain Fraser, partner at FRP Advisory, said: “We are delighted to have secured the sale of the Aberdeen Westhill and Aberdeen City hotels to Cairn Group.

“The administration period provided a vital cushion to allow for a thorough marketing process while the hotels continued to trade as normal.

“We are pleased to have secured the future of these two important Aberdeen hotels and the 125 associated jobs and wish Cairn Group every success for the future with the addition of these high quality assets to its portfolio.”

Cairn Group already owns and operates two hotels in the nearby vicinity – the Station Hotel in the heart of Aberdeen city centre which is set to receive a significant £5M investment, and Best Western Summerhill Hotel and Suites Aberdeen, three miles afield.

Richard added: “We know Aberdeen very well and have a strong existing relationship with IHG so we are confident we can turn around the fortune of the hotels as the regional market recovers. We’re looking forward to doing more business here and investing in the economy.”

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