£28m secured for landmark luxury hotel in Scottish city facing ‘exceptional level of demand’
“Inverness and the wider Highlands region continues to rank among the top destinations in the world to visit” – Tony Story, Kingsmills Hotel Group
Funding of more than £28 million has been secured to create a new 72-bedroom hotel in the heart of Inverness.
Kingsmills Hotel Group plans to convert an office building into the new hotel, expanding the group’s footprint in the capital of the Highlands and strengthening its position in the Scottish hospitality market.
The company, a long-standing client of Barclays, has secured £28.5m in financing to deliver the “milestone” project. Work on the office conversion will start immediately, with completion of the hotel expected in 2027.
The business currently owns and operates two hotels in Inverness and is said to have been working towards its latest project for many years. The new hotel will allow the group to meet “growing demand for high-quality accommodation in the region”, while supporting the area’s tourism and local economic development.
Tony Story, chief executive of Kingsmills Hotel Group, said: “Inverness and the wider Highlands region continues to rank among the top destinations in the world to visit, and with this exceptional level of demand comes a clear need for expanded luxury hotel offerings. We are delighted to announce the development of our third property in Inverness - KIN.
“As with each of our projects, we remain committed to working with local suppliers and services, ensuring that our investment supports the community and showcases the region’s unique talent.”
He added: “We would also like to extend our sincere thanks to Barclays for its continued support of our ambitious development plans. Their partnership has been invaluable as we work to bring world-class hospitality experiences while visitors explore our unique part of Scotland.”
Gordon McKean, relationship director at Barclays UK Corporate Bank, said: ”We are proud to support the Kingsmills Hotel Group in delivering this exciting project. Our role as lender reflects our commitment to helping hospitality businesses invest for growth and strengthen regional economies.
“This deal is also a great example of our £22 billion Business Prosperity Fund in action - designed to help businesses of all sizes invest, create jobs, and strengthen the UK economy,” he added.
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