Three key figures go in shake-up at Scotsman group

Three senior figures have parted company with the Scotsman Hotel group as part of a major effort by the group's financial backers to try and increase profit.

Andrew Buchanan, director of operations, Nicholas Crawley, managing director, and Charles Vere Nicholl, former chairman, have all left.

Jonathan Wix will be staying on at the group as development director.

Louise Dunning, who owns her own consultancy firm and was initially carrying out a report into the group's hotel on North Bridge, Edinburgh, takes up the role of managing director of the hotel.

Robert Breare, who has close ties with the hotel group's backers, venture capital firm Botts & Co, fills the position of chairman, formerly held by Botts & Co chief executive Andrew Haining.

It is understood that the shake-up came about because Botts & Co wanted to improve profit margins.

The group consists of 42 The Calls in Leeds, the 68-bedroom Scotsman hotel in Edinburgh, housed in the former offices of the Scotsman newspaper, and a third hotel in Paris, which is being renovated and is due to open early next year.

The group was founded in May 1999 with £90m-worth of backing from Botts & Co and the Royal Bank of Scotland. Its plans were to open about 12 town house hotels with 50-80 bedrooms.

Crawley and Vere Nicholl were both previously with the Regal Hotel Group. Buchanan was with Rocco Forte's RF Hotels and Wix was the founder of 42 The Calls.

Crawley this week declined to comment and Buchanan was due to issue a press release.

Wix said Buchanan had been made redundant after the board decided to restructure the top team to manage the business more efficiently.

Buoyant sales were not being translated into profits, he said, because of a "managerial style issue". The group was "carrying an enormous number of staff for the size of hotels we have".

Wix said the restructure had allowed Crawley and Vere Nicholl to withdraw to pursue their many other interests. Vere Nicholl, who has been ordained a vicar and has a hotel in the Caribbean, had already become a non-executive director several months ago.

by Samantha McClary and Angela Frewin