The Glenburn Hotel in Rothesay, which was Scotland’s first “hydropathic” hotel, has been put in administration.
The prominent grand building on the Isle of Bute was built in 1843 on a hilltop overlooking the town.
It has been closed since November last year with staff initially being placed on furlough.
However, now it has been confirmed all employees will be made redundant with immediate effect.
Why was the Glenburn Hotel struggling?
The Glenburn Hotel was extensively refurbished in 2016 and had about 121 bedrooms as well as a ballroom, restaurants, bars, terrace and conference facilities before being placed in administration.
Its location overlooking Rothesay Bay made it popular with package holiday businesses as well as independent travellers.
The hotel had traded briefly since the start of the first Covid lockdown early last year before closing its doors in November.
Administrators FRP Advisory have blamed “significant operating costs” for the decline when coupled with declining revenue due to Covid – causing “unsustainable” cash flow problems.
Hopes hotel can be revived
The Glenburn Hotel opened as a classic grand seaside hotel in 1892, targeted at affluent travellers.
It became Scotland’s first hydro hotel with guests coming for health spas and to enjoy the therapeutic benefits of the surroundings.
Joint administration Stuart Robb, a 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 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.”
Parties interested in the Bute hotel should contact kris.tosh@frpadvisory.com