Glenburn goes bust
Landmark hotel falls victim to Covid cash crisis
The Glenburn Hotel enjoys a fine position
One of Scotland’s best-known Victorian hotels has been put into administration after a collapse in trade caused by the Covid-19 pandemic.
The owner and operator of the Glenburn Hotel in Rothesay on the Isle of Bute was Scotland’s first ‘Hydropathic’ hotel when it was built in 1843.
Sited on a prominent hilltop location overlooking the bay, it opened as a classic grand seaside hotel in 1892 aimed at an affluent client base which was offered a lavish holiday experience.
The Glenburn was extensively refurbished in 2016 and features around 121 guest rooms, ballroom, restaurants, bars, terrace, conference facilities and extensive terraced gardens.
Views over the bay
The hotel was popular with package holiday businesses and independent travellers, many of whom would return regularly. There are also three cottages located within the grounds.
The hotel had traded briefly since the start of the first lockdown in early 2020 and has been closed since November, 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 COVID 19 pandemic leading to unsustainable cash flow problems.
The Joint Administrators Stuart Robb and Chad Griffin, partners with FRP Advisory, will begin the process of marketing the hotel for sale.
Glenburn Hotel’s lavish interior
Unfortunately, all remaining staff will be made redundant with immediate effect.
Mr Robb said: “Unfortunately, having explored all its options, the Hotel was unable to survive the significant fall in revenue caused by the COVID 19 pandemic whilst 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.
“Whilst 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.”