The Glenburn Hotel on the Isle of Bute, which was originally built as Scotland's first "hydropathic" hotel, has gone into administration having fallen victim to the Covid-19 pandemic.

Stuart Robb and Chad Griffin of FRP Advisory have been appointed joint administrators of The Glenburn Hotel Limited which owns and operated the hotel overlooking Rothesay Bay. Originally built in 1843, the Glenburn opened as a classic grand seaside hotel in 1892 offering lavish holiday experiences to an affluent client base.

With 121 guest rooms, a ballroom, restaurants, bars, terrace, conference facilities and extensive terraced gardens, the property was extensively refurbished in 2016 when it was acquired by Malaysian investors. It was popular with package holiday businesses and independent travellers, but has only traded briefly since the start of the first lockdown in early 2020, and has been closed since November of last year.

Staff were initially placed on furlough, but all remaining employees have now been made redundant with immediate effect. The joint administrators are now beginning the process of marketing the hotel for sale. 

“The Glenburn Hotel is a landmark hotel with a long history stretching back to its opening as a grand seaside hotel in 1892," said Mr Robb, a partner with FRP Advisory. "Unfortunately, having explored all its options, the hotel was unable to survive the significant fall in revenue caused by the Covid-19 pandemic whilst still having to meet significant maintenance and running costs.

"We will now focus our efforts on assisting employees, many of whom have worked at the hotel for many years, to submit their claims for redundancy and other sums due to them whilst preparing to market and sell the hotel. Whilst this is a sad day in the hotel’s history, this is an outstanding opportunity to acquire an iconic hotel on one of Scotland’s most accessible islands."