Business closures: Strathmore Hotels Limited crashes into administration with 400 jobs at risk

Thank you for subscribing!

Strathmore Hotels Limited is the latest hospitality business to begin administration proceedings

A major hospitality group that owns Scotland's "oldest hotel" has fallen into administration, leaving the business future of its multiple sites in doubt and putting 400 jobs at risk.

Strathmore Hotels Limited, the East Kilbride-based group operating eight properties across Scotland and northern England, has entered administration.

Alistair McAlinden and James Dewar of restructuring firm Interpath have been appointed as joint administrators to oversee the process.

The company's entire portfolio of hotels will remain open for business during the administration, with the new appointees assessing available options going forward.

All 410 members of staff employed by the group are being kept on to assist the administrators throughout this period.

Guests have been urged to continue with existing bookings and direct any questions to Strathmore Hotels through the usual channels.

The group had faced persistent pressure from creditors over a period of several months before the administration was confirmed.

This culminated in a winding up petition being lodged against the company in July 2026, escalating the financial crisis facing the business.

Rather than allow that process to proceed, the decision was made to pursue the formal appointment of joint administrators instead.

McAlinden and Dewar will now undertake a thorough assessment of the available routes forward for the hotel group.

The move is intended to provide a more structured framework for resolving the company's prolonged financial difficulties while keeping operations running.

The group's Scottish holdings span a wide geographical area, from the Alexandra Hotel and the Ben Nevis Hotel & Country Club, both situated in Fort William, to the Ben Wyvis Hotel in the Highland spa village of Strathpeffer.

Further south, the portfolio includes the Nethybridge Hotel in Speyside near Aviemore, the Royal Hotel in the coastal town of Oban, and the Salutation Hotel in Perth.

Beyond Scotland, Strathmore also operates two properties in northern England: the Cairn Hotel in the North Yorkshire town of Harrogate and the Cumbria Grand Hotel in the Lake District.

Mr McAlinden, who heads Interpath's Scottish operations, pointed to broader industry headwinds as a contributing factor.

He said: "The hospitality sector has faced a number of significant challenges in recent years, including rising operating costs, inflationary pressures, workforce shortages and changing consumer spending patterns.

"However, we would like to reassure all stakeholders that it is very much business as usual across the portfolio, and we encourage guests to continue visiting the hotels as normal while we explore the best possible outcome for the business."