One of the north-east’s most famous hotels has gone bust amid “impossible” trading conditions brought on by the pandemic.
The luxury Ardoe House Hotel, which is run by Mercure on the outskirts of Aberdeen, has been plunged into liquidation with the loss of 68 jobs.
Bosses said the Covid-19 crisis had proved to be the final straw for the business, which had been struggling for years following the oil and gas downturn.
The historic four-star hotel on South Deeside Road in Blairs has traditionally been a popular venue for functions, conferences and weddings.
Hospitality sector among hardest hit by pandemic
Ken Pattullo, business adviser at Begbies Traynor, which is working with the directors of the hotel, said: “Unfortunately, the hospitality sector has been among the hardest hit by the pandemic with the forced closure last spring having devastating consequences for the Ardoe House Hotel.
“With Aberdeen currently in Tier 2 and coronavirus restrictions continuing, the directors felt the hotel was no longer viable and had no choice but to put the business into liquidation.
“In the face of ongoing uncertainty due to the health measures implemented to help combat the global pandemic, there was no way of saving the business and the jobs it supported.
“It is sad to see the closure of such a popular hotel.”
The venue is a 19th Century Scottish Baronial- style mansion, set in 18 acres of parkland and has 120 rooms as well as restaurants and bars.
Last year, all of the bedrooms underwent a makeover as management made plans for the future.
‘The implications of this are, sadly, far wider than the direct job losses at this iconic hotel.’
Stephen Gow, vice-chairman of Aberdeen City and Shire Hotels Association, said the circumstances had made it “impossible” for the hotel to continue trading.
He said: “All hotels have faced almost a year of trading with limited or no profit and hotels in Aberdeen have been particularly hard hit by this as it comes on the heels of the oil and gas downturn.
“Hotels have missed out on leisure travel all summer, business travel all year and now face the prospect of no Christmas events.
“For a banqueting hotel, which Ardoe is, this has made it impossible to continue trading.
“Our thoughts as an association are with the whole team at Ardoe House in this very difficult period and also for the whole supply chain which keeps a hotel and restaurant going.
“The implications of this are, sadly, far wider than the direct job losses at this iconic hotel.”
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