The Atholl Hotel on King’s Gate, Aberdeen, is being remarketed by new agents at a discounted price of £3.2 million.
Cornerstone Business Agents, whose offer goes live today, said it had been repriced to “sell in an improving market”.
Barry McNeil, director, Cornerstone, is now handling the property sale on behalf of co-owners Gordon Sinclair and Richard Nicoll.
Mr McNeil said: “We have placed the hotel on the market at a realistic price that is very reflective of the current market.
“Our pricing at £3.2m takes into mind our clients desire to retire and focus on other projects.
Hotel market ‘shaping very well’
“We think the hotel market in 2024 is shaping very well. We are likely to see a drop in interest rates in Q1 and, thankfully, energy costs have peaked.”
He added: “2024 seems a better environment to sell a hotel and we are confident the Atholl Hotel will find a buyer who values the staff and customers as much as our clients.”
The hotel is an Aberdeen dining institution, a popular hotspot for social and business gatherings in the city.
It went on the market last June, through another agent, at offers over £3.5m.
Mr Sinclair, the managing parter, planned to retire from the hospitality industry after nearly 50 years. Mr Nicoll said he wanted to focus on other business interests. These included The Dutch Mill Hotel, in Aberdeen, and The Broadstraik Inn, in Westhill.
Mr Nicoll and his father, Gordon, owned a lion’s share of the Atholl until a couple of years ago, with Mr Sinclair holding a smaller stake. Gordon Nicoll died in November 2021, aged 66, after battling cancer.
Mr Sinclair has been a hands-on partner since 1996 but his links to the hotel go back further. He started his hospitality career there as a trainee, from 1974 to 1978, while it was under the ownership of renowned Aberdeen hotelier Stewart Spence and his wife, Sheila.
The four-star hotel has 34 en suite rooms for up to 62 guests.
It also boasts two function rooms, a restaurant, bar and lounge area which together can seat nearly 200 guests, along with a car park for up to 64 vehicles.
The two-storey, B-listed property was built as a private home in 1892 and has traded as a hotel since 1946. A 20-bedroom extension was completed in the early 1980s.
The business netted turnover of more than £2m in the year to November 2022.
In its sales particulars for the hotel, Cornerstone says: “Our clients feel enhanced marketing with help push the room sales further, and equally enhance the food and beverage offering.
“New owners will want to explore the ability to increase room stock through further development at the rear of the property.
“This is certainly an area where short-term capital investment could be repaid, with increased profitability from more room sales enhancing the medium to long-term investment.”
The bricks and mortar are located in one of the most sought after addresses in Aberdeen.”
Cornerstone adds: “An additional block of rooms could be placed on top of the existing accommodation block at the rear. Also, the size of the car park permits utilising
some of the space for potential rear building expansion.
“The availability of the Atholl Hotel represents a very solid and attractive investment
return for hospitality operators.
‘Steady and impressive profit’
“The business produces a steady and impressive profit. Equally, the bricks and mortar are located in one of the most sought after addresses in Aberdeen offering solidity in terms of an underlying value.”
Any development would be subject to local authority planning consents.
Prospective buyers can find out more about the sale at www.cornerstoneba.co.uk or by calling the firm on 01772 376556.
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