160-year-old Scottish hotel goes into administration
The company behind a historic Scottish hotel, which has been on the market since 2024, has been put into administration.
A historic Scottish hotel dating back 160 years has fallen into administration due to “crippling” debts.
The Inveraray Inn Ltd, which operates Inveraray’s George Hotel, has been placed into administration by its directors in an effort to safeguard up to 60 local jobs.
Kenneth Craig and Kevin Mapstone, from business recovery firm Begbies Traynor, were appointed as joint administrators of Inveraray Inn Ltd trading as the George Hotel on March 28.
The George Hotel has been owned by the same family since 1860, with the venue put up for sale in the summer of last year, but failing to find a buyer.
Administrators said the company was not connected in any way with the Inveraray Inn, a hotel by the same name in the Argyll and Bute town.
Both the administrators and Thomas McKay, a partner at Begbies Traynor, will now supervise business operations as the hotel continues to trade in the normal manner, while efforts are made to find a buyer on the open market for boutique hotel and inn.
Mr McKay, who is overseeing the trade and sale process with the administrators and staff, said: “The directors have taken the difficult decision to place the George Hotel into administration as a result of historic debts, which were crippling the cash flow of the business.
“The business has been in the Clark family for seven generations and their priority was to safeguard the jobs and future of the 60 full and part-time employees. The hotel has a fantastic history and beautiful location, offering excellent accommodation and food. The staff have also been fantastic in their hard work and everyone is determined to find the best possible outcome for the benefit of all stakeholders.
“We ask the local community and customers further afield who wish to use the hotel, as well as the subscribers to the hotel - over 25,000 of them - to continue to support and visit the venue as usual as we seek to find a buyer for the business as a going concern. The George offers fantastic services, which are critical to the community of Inveraray and nearby local towns.
“We are now entering the spring period with summer trade to follow, so it is business as usual and we are fully open for trade as a hotel, which we believe will be attractive to many interested parties. For the time being, we will start to market the business and the management will focus on trading the venue profitably with the support of the hotel’s loyal customers and staff.”
Inveraray is a popular tourist destination and home to the historic Inveraray Castle, which was made showcased in the BBC drama A Very British Scandal, which aired in 2022.
The George, originally built in 1776, is one of the main places to stop for something to eat or drink in the town and boasts 24 bedrooms. The hotel is located on the picturesque western shore of Loch Fyne and has won awards for its accommodation, bar and food. Its restaurant holds an AA Rosette.
The hotel will continue to honour bookings.
Joint administrator, Kenneth Craig of Begbies Traynor, said: “The business has a great reputation both as a restaurant and bar, and as one of Scotland’s most historic hotels, and we’re confident that a suitably qualified buyer will want to take over the reins of the George.
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