Banchory’s Douglas Arms Hotel has plunged into administration with rising energy costs blamed as “the final straw”.
The hotel is now up for sale with property firm Graham & Sibbald looking for offers of around £395,000.
In January, the property had been put on the market seeking a price of £550,000.
It closed its doors the same month with four members of staff losing their jobs.
Administrator Michael Reid, of Meston and Co, was appointed after the business entered voluntary liquidation.
‘Trading business unsustainable’
A statement from Graham & Sibbald said: “Following on from the problematic and difficult trading conditions, for two years, during the Covid pandemic, the significant increase in energy costs, pre-Christmas 2022, made the trading business unsustainable, which signalled the decision the place the business into a voluntary liquidation process.”
The Douglas Arms Hotel, on the High Street, has eight bedrooms, a lounge bar/bistro and a cafe.
It also has an outdoor balcony terrace with the former lounge bar/restaurant, suitable for additional development. Also included is a spacious four-bedroom private flat.
It is being marketed as “a wonderful opportunity to acquire and re-establish this once busy hostelry in a very popular locality”.
Administrator Mr Reid said: “The Douglas Arms Hotel was a viable business prior to Covid. It would be fair to say that the hotel was a victim of the pandemic.
“The owners were simply not willing to carry on after a difficult couple of years and decided to call it a day.
“Banchory appears to be a town on the up with new housing developments and the recent approval for the new retail park, which will include M&S Food, Lidl and others.
“This is an opportunity to own a hotel on Royal Deeside and there has already been interest and viewings.”
Hopeful business can ‘re-establish’
Graham & Sibbald hotel and leisure consultant Alistair Letham said: “The increase of the energy costs was the “final straw” before deciding on the voluntary liquidation but this offers new owners a fantastic opportunity to develop and re-establish the Douglas Arms Hotel as a thriving business, of appeal to locals and visitors, alike.
“The inclusion of a four-room private flat is ideal for resident owners. Royal Deeside has perennially been a popular destination; maybe even more so now.”
Graham & Sibbald said the hotel “can attract many passers-by on the main A93 Aberdeen to Balmoral and Braemar Road, and it has enjoyed the patronage from locals, visiting fishermen, tourists and golfers, as well as a range of commercial custom.
“New owners of the Douglas Arms Hotel have the opportunity to re-establish the hotel as a good owner-driven, local, hotel business.”
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