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Hotel chain plans reopening but warns ‘unsustainable’ costs could still cause job cuts

A bird’s-eye view of the Macdonald Aviemore Resort.
A bird’s-eye view of the Macdonald Aviemore Resort.

A major hotel chain has announced plans to reopen its rooms across Scotland, but says proposals to slash potentially hundreds of jobs are still on the table.

Macdonald Hotels Group has begun taking bookings from July 15, in line with government guidance the tourism industry may be able to restart from that date.

The firm runs 13 venues in Scotland, including the Aviemore Resort, Norwood Hall in Aberdeen, Pittodrie House near Inverurie and Drumossie in Inverness.

Last week it announced it had begun a consultation process with all of its 2,299 employees across Scotland and England, saying it had suffered a “total collapse” of income amid the pandemic.

Of these positions, around 1,800 were deemed to be “at risk”.

A statement from the company’s deputy chairman Gordon Fraser said the group’s trading position was “simply unsustainable,” with monthly losses of £2 million even after stringent cost-cutting, which has included wage reductions.

However it is understood that the consultation process is continuing and no decisions have yet been made.

The chain has now reopened bookings to customers, based on a prospective date from the Scottish Government, and has pledged to keep them safe as its top priority.

Its website says its teams have been working “flat-out” to ensure all of the properties meet new standards for safety and hygiene.

These include the introduction of sanitising stations, more regular cleaning rotations, one-way traffic routes and new methods for serving food.

Macdonald Hotels says all of its staff have been retrained to ensure they are fully compliant with the new rules.

A statement from the firm said: “We can’t wait to welcome guests back to our hotels and rest assured, as well as the widest choice and warmest welcome, we’re committed to keeping everyone safe and sound.”

Despite the implementation of new measures, the hotel chain says occupancy is likely to remain low until lockdown eases even further and public confidence returns to the tourism sector.

In his announcement last week, Mr Fraser said: “There is no realistic prospect of us returning to anything approaching normality for the foreseeable future and, while its enormously regrettable, we simply must take these steps to ensure that we have a meaningful business when this situation ends, enabling us to bring back as many of our employees as possible.

“We are seeing more and more of our counterparts being forced into the same, very difficult decisions to either close completely or to cut back on hard-working and valued members of staff. It is a tragedy.

“Everyone understands that drastic steps had to be taken to halt coronavirus but the only way out of this for our industry is when the current restrictions are eased significantly, and people feel comfortable returning to hotels and restaurants.”

Highlands and Islands MSP Edward Mountain said he has faith the hotel group’s founder and executive chairman is dedicated to saving jobs and his business.

Mr Mountain said: “I know the Macdonald family will be working hard to ensure the future of all their staff in all their Macdonald hotels.

“I also have absolute confidence that Donald Macdonald will do everything possible to continue his business and their employment.”

Andrew Martin, director of the Scottish Centre of Tourism at Robert Gordon University, said the entire tourism industry is facing a difficult period.

“It’s really tough for everyone out there,” he said.

“I’m in contact with a lot of hoteliers on a regular basis and they are always looking for more support.

“My view is the industry needs help with clear guidelines on social distancing and how to keep customers safe, so they can open more quickly and take in some cash.

“If we are going to save these hotels on the brink we need to generate money. There is a financial imperative there.”