Further investment planned
Castle Collection in £2.5m Perthshire hotel acquisition
Scotland’s Hotel will be upgraded
A Perthshire hotel has been acquired in a £2.5 million off-market deal by an Irish family-owned hotel chain which intends to invest £2 million in an upgrade.
The 72-bedroom Scotland’s Hotel & Leisure Club in Pitlochry was sold on behalf of the Crerar Hotel Group to Castle Collection owned and run by the MacCumhaill family.
Scotland’s Hotel & Leisure Club forms the company’s seventh hotel property across Scotland, Ireland and Wales and joins Fishers Hotel and Atholl Palace, also in Pitlochry.
Fionn MacCumhaill, managing director of Castle Collection, said: “Pitlochry is a great choice for staycation tourism and we aim to create a modern metro boutique hotel with spa to grow this segment of the market.
“We will be investing a further £2m over the coming year to develop Scotland’s Hotel & Leisure Club into a modern vibrant metro boutique hotel.”
Paddy Crerar, CEO of Crerar Hotel Group, said: “It was a pleasure to deal with MacCumhaill family and Casle Collection which made the difficult decision to let Scotland’s go much easier.
“Scotland’s could well have been retained to be redeveloped and join the high-quality portfolio we are fully committed to building however the deal made sense to both parties, we are very pleased with the terms and wish Castle Collection every success with this latest addition to their group.”
Julian Troup, head of Colliers’ UK Hotels Agency, said: “The acquisition of Scotland’s was conducted in a highly confidential fashion and is a further example of domestic and overseas buyers looking to secure a hotel in a prime Scottish location.”
Crerar Hotels have retained Colliers to assist in disposing of a further cluster of their hotel portfolio. Three of its hotels are on the market.
Mr Crerar said: “Our strategy is on track to `right size` our Scottish portfolio and we are well on with significant investment and development of the majority of our retained hotels.
“Once our investment plans are complete, we believe Crerar Hotels will be one of the country’s most desirable hotel groups of the highest quality.”