Scotland hotels up for grabs as holding company folds

A Holiday Inn and a Holiday Inn Express in Aberdeen, together with a Holiday Inn Express in Edinburgh are up for sale after Aberdeen-based owner European Development Company went into administration. Partners at FRP Advisory and joint administrators of EDC will continue to trade the hotels as normal while marketing them for sale. Founded in 2007, EDC owned and operated a Holiday Inn Express on Chapel Street in the centre of Aberdeen and a Holiday Inn in Westhill, on the outskirts of the city, together with a Holiday Inn Express on Picardy Place in Edinburgh city centre. Turnover across the three hotels is around £11m, with 136 staff employed, 117 of which are in Aberdeen. The administration has been caused by cash flow problems caused by the downturn in the oil and gas sector, and intense price competition from new-build hotels in the Aberdeen market. Iain Fraser, joint administrator and partner at FRP Advisory, said: “The administration presents a rare opportunity to acquire quality hotels with an established trade and reputation in their local markets. The hotels could appeal to an existing hotel operator looking to expand its business, or an entrepreneur keen to enter the hospitality market by acquiring quality properties in prime locations. I am pleased to say that we are in advanced discussions for the sale of the Edinburgh hotel, and would urge interested parties to contact us as soon as possible with respect to the Aberdeen properties.” There are no immediate plans for redundancies. • To send feedback, e-mail amber.rolt@estatesgazette.com or tweet @amberrolt or @estatesgazette