Newcastle hotel group saves 125 jobs after buying Scottish hotels from administration25/07/2017
A Newcastle bar and hotel group has saved around 125 jobs after buying two Scottish hotels out of administration.
The Cairn Group has acquired the Holiday Inn Express City Centre and the Holiday Inn Aberdeen West for an undisclosed sum.
The hotels were owned by Aberdeen-based European Development Company, which called in administrators last November.
Supported by Mincoffs Solicitors LLP and HSBC Bank plc, Cairn Group has purchased both hotels – the midmarket Holiday Inn at Westhill with 86 beds and the 155-bed Holiday Inn Express in Aberdeen city centre.
Richard Warren, Cairn Group’s finance director said: “We are pleased to announce that Holiday Inn Express City Centre and Holiday Inn Aberdeen West have joined our portfolio. Aberdeen is still a busy thoroughfare for the corporate audience and as a result, the convenient locations of the hotels make them popular with visiting trade as well as tourism.
“It’s fantastic we’ve been able to retain all of the staff based at the two sites who are dedicated to providing excellent customer service and comfortable stays for guests.”
Cairn Group already owns and operates two hotels in the nearby vicinity – the Station Hotel in the heart of Aberdeen city centre which is set to receive a significant £5m investment, and Best Western Summerhill Hotel and Suites Aberdeen, three miles afield.
Mr Warren added: “We know Aberdeen very well and have a strong existing relationship with IHG so we are confident we can turn around the fortune of the hotels as the regional market recovers. We’re looking forward to doing more business here and investing in the economy.”
Ahead of the acquisition the family-run group held a portfolio of 31 hotels and more than 30 bars and restaurants across the UK.
In late 2016, it acquired a collection of five properties in Stirling, County Durham, Harrogate, Cardiff and Brighton, adding 665 rooms to its now 3,000 room portfolio, in the biggest hotel transaction by a North East company last year.