Administrators take over Ramada hotel running

Oct 7 2011 Perthshire Advertiser Friday

PERTH’S landmark Ramada hotel is being run by administrators, it emerged yesterday.

After the hotel’s owners ran into financial problems, administrators Grant Thornton were brought in last Friday for the Ramada Jarvis group.

But there is uncertainty after a deal which was struck shortly after did not include the Perth site.

Twenty-four of the brand’s properties have reportedly moved in what is called a “pre-packaged” administration sale, and now form part of another hotel group.

The deal saved the jobs of around 2000 staff. But only five hotels from the Ramada chain remain listed on the group’s website, three of which are in Scotland.

A statement on the Ramada Jarvis website yesterday read: “We are delighted that Jupiter Hotels Limited and Jupiter Hotels Wetherby Limited following appointment, has successfully bought 24 of the hotels and the remainder all continue to trade as normal and under the administrator’s supervision.”

The Scottish Tourist Board three star rated, 76 bedroom hotel, which is set in a 15th Century watermill, is still listed on the website as accepting bookings.

The PA contacted Grant Thornton’s about the prospects for sale and the hotel’s staff on Wednesday and yesterday, but at the time of going to press no one had responded.

We also spoke to the Perthshire Chamber of Commerce, which used to host events at the hotel, about its prospects.

Vicki Unite, chief executive of Perthshire Chamber of Commerce, said: “We sincerely hope that someone will see the business potential of this active and well-respected hotel, which is situated perfectly for both business and leisure tourism, and that it can be saved.

“Perthshire is perfectly situated in Scotland for both business and leisure tourism and this hotel is part of an impressive portfolio of accommodation available for those attending the many conferences and events in the area throughout the year, and particularly through our busy tourist season.

“The last thing the Perthshire Chamber wants to see is a hotel closure and we sincerely hope it won’t come to this.

“We encourage those who can to preserve the jobs at this Perth hotel wherever possible.”

The group and hotel have been regular sponsors of sporting events in Perthshire.

Six years ago eight of the hotel’s staff helped secure a prestigious title for Ramada for how it manages staff.

Perth’s hotel industry has come through mixed fortunes in recent times.

The Station Hotel was subject to a bid for conversion into a care village, but reopened as a hotel before the summer.

The Waverley Hotel, latterly used as homeless accommodation, is currently closed owing to low demand through the homeless service.

The property was bought by Stagecoach boss Brian Souter and his sister Ann Gloag a year ago.