Two Holiday Inn hotels in Aberdeen enter administration

06 March 2017 by
Two Holiday Inn hotels in Aberdeen enter administration

The Holiday Inn Express City Centre and Holiday Inn Aberdeen West hotels in Scotland have gone into administration.

JLL's Hotels & Hospitality Group has been appointed by joint administrators Thomas Campbell MacLennan and Alexander Iain Fraser of FRP Advisory, to sell the two sites for a figure in excess of £7m.

The 155-room Holiday Inn Express City Centre on Chapel Street in Aberdeen and the Holiday Inn Aberdeen West in Westhill, which has 86 rooms, are being sold separately or as a package and are subject to existing franchise agreements with IHG.

Aberdeen hotels are continuing to suffer from the oil price collapse which resulted in drilling activity in the North Sea falling to its lowest level for the last 35 years in October 2016. Revenue per available room (revpar) during the fourth quarter of last year fell 22% year-on-year, according to the Hotel
Bulletin: Q4 2016 published by AlixPartners, AM:PM, HRS and STR. It was the eight consecutive quarter for falling revpar in the city.

Neil Milligan, associate, JLL's Hotels & Hospitality team said: "This is a great opportunity to acquire two branded hotels at the bottom of the trading cycle. As the Aberdeen market recovers with the strengthened oil price, the strategic locations of both assets will allow incoming investors to grow revenue through strategic investment in the assets and capture the pending recovery of the wider macro economy.

"Despite the recession experienced by the energy sector that has impacted on Aberdeen hotels, the city remains a target for investors keen to enter this corporate driven market that has historically achieved some of the strongest RevPAR* growth outside of London."

Starboard acquires two Holiday Inn Express hotels for £11.5m >>

Holiday Inn Express Edinburgh City Centre sold for £17.7m and under new management >>

Holiday Inn Express Aberdeen Airport to open >>

Videos from The Caterer archives

Are you looking for a new role? See all the current hospitality vacancies available with The Caterer Jobs

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking