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The Herald Scotland
12-05-2025
- Business
- The Herald Scotland
Landmark hotel in same family for seven generations for sale
This is a hotel that has been in the same family 165 years, and an appeal was then made for people to rally round while a buyer is sought for the business. The George Hotel, which is just yards from the Loch Fyne shore in Inverary, was overwhelmed by historical debts. The debts impacted the critical cash flow of the business, the administrators said. Around 60 jobs were put at risk. The hotel is near the shores of the loch. (Image: Google) The news about the George Hotel came in recent weeks with the industry on a precipice as a new wave of tax increases were due to come into force at the time. I know of one hospitality business with a head count of 30 adding £20,000 a year to outgoings on its national insurance column alone. For longstanding companies that are more than just businesses, they are a part of the community and often significant employers, it has been a difficult time in the wake of the coronavirus pandemic. The costs of Brexit, not least in staffing, continue. Rachel Reeves, Chancellor of the Exchequer in the Labour government, came under fire after the Spring Statement for not doing enough to help and leaving the outlook bleak for many. Stephen Montgomery, director of the Scottish Hospitality Group, said that "the Chancellor did not even mention the hospitality industry once". He said: "The reality is hospitality businesses up and down the country are facing a tax bombshell of nearly £3.5bn, and the Chancellor of the Exchequer's statement has done nothing to allay the danger of job losses and closures across the nation's pubs, hotels, and restaurants." In the case of the George Hotel, "the difficult decision [was taken] as a result of historical debts which were crippling the cash flow of the business", said Thomas McKay, of Begbies Traynor, who is overseeing the trade and sale process. "The business has been in the Clark family for seven generations and their priority was to safeguard the jobs and future of the 60 full and part-time employees. "The hotel has a fantastic history and beautiful location, offering excellent accommodation and food." READ MORE: He added: "We ask the local community and customers further afield who wish to use the hotel, as well as the subscribers to the hotel - over 25,000 of them - to continue to support and visit the venue as usual as we seek to find a buyer for the business as a going concern." In the wider picture, more stays were recorded in Scottish hotels in February compared to the same time the year before, but the RSM Hotels found profits were down as cost pressures continue. The data, by Hotstats and RSM UK, shows occupancy of Scottish hotels increased slightly from 68% to 69.1% year-on-year in February. Stuart McCallum, partner and head of consumer markets in Scotland at RSM UK, said the future picture looked worrying for many businesses working in the sector. "Looking ahead," he said, "the increase in costs from the rise in employer's national insurance, and the national minimum wage rise, continue to cause concern for many. "The rise in minimum wage potentially has a ripple effect that is felt throughout all staff, as others higher up the pay scale expect to see their salaries rise accordingly. "As we are already seeing revenue per room reducing, these further cost increases could prove difficult to swallow for many hotel owners." Thomas McKay, a partner at Begbies Traynor, was supervising business operations as the hotel business continued to trade 'in the normal manner, providing accommodation, food and public house services, while efforts are made to find a buyer on the open market 'for the 165-year-old boutique hotel and inn. Administrators overseeing the sale have appointed Colliers to market the business and property in Inveraray for offers over £2.85 million. Colliers said it would be leading the search for a buyer for the waterside hotel, bar and restaurant business, which stands on a one-acre site on the western shore of the loch. There are also five residential properties for sale as part of the administration, situated adjacent to the hotel and on Inveraray's main street, with a total asking price of around £750,000. Potential buyers and interested parties were urged to make inquiries direct to Colliers' Glasgow office. This article appeared in Business HQ Monthly
Daily Mail
26-04-2025
- Business
- Daily Mail
'Red tape Rachel' has called time on VE Day party, say hard-pressed pub landlords
Hard-pressed pub landlords in Scotland may choose not to keep their bars open late for VE Day amid fears they could LOSE money because of Labour and SNP red tape. Licensed premises in England and Wales will see their opening hours extended on May 8 as part of UK Government plans to commemorate the ending of the Second World War in Europe in 1945. Calls have been made for Scottish councils to also allow pubs to stay open longer. However, when Scotland's 32 local authorities were approached by The Mail on Sunday, the majority of them said no pubs had requested the licence extension. Hospitality groups have explained the sector is now in such a bad way that keeping the taps running late will see them lose money due to decisions taken by the UK and Scottish Governments. Stephen Montgomery, director of the Scottish Hospitality Group, said: 'With the 80th anniversary of VE Day nearly upon us, and as an ex serviceman myself, it is important we remember the sacrifice made by our armed forces right across the UK.' However, he added: 'The only issue is VE Day is a Thursday and many places are finding it hard to fill their venues. 'So it could be counter productive for many given the cost pressures we face after the devastation inflicted on the sector by Rachel Reeves through the National Insurance increases at a UK level, and also the lack of support for many hospitality businesses from the Scottish Government in regards to the non-domestic rates discount seen in England.' Colin Wilkinson, the managing director of the Scottish Licensed Trade Association, said: 'The fact no bars or pubs are asking for an extension speaks for itself. 'The big killer now is the rise in National Insurance contributions that employers have to make for staff, it is unbelievable.' Mr Wilkinson, who has 44 years of experience in the licensed trade, said he had never seen the sector in such a bad way. Bars in England and Wales will be able to stay open until 1am on May 8 after an extension was announced by the Prime Minister, Sir Keir Starmer. Scottish Secretary Ian Murray called on the Scottish Government to follow suit, although licensing is actually a local authority decision. Most of Scotland's councils have confirmed they will not be extending the licensing limits, either because bars and restaurants had not requested it, or because a 1am cut-off time was already in place. In response to the concerns raised by the licensed trade, the UK government said it is supporting pubs 'by capping corporation tax, cutting alcohol duty on draught pints, and protecting the smallest businesses from the employer NI rise'. Meanwhile, the Scottish Government said the Chancellor should reverse the hike in employers' NI contributions. It also said it had offered 40 per cent relief – capped at £110,000 – for premises eligible for the Basic Property Rate.
