The owner of three Holiday Inn hotels across Aberdeen and Edinburgh has fallen into administration.
Administrators at FRP Advisory said that Aberdeen-based European Development Company (EDC) had fallen victim to “severe cash flow problems” sparked by the downturn in the oil and gas sector, along with “intense” price competition from new entrants to Aberdeen’s hotel market.
We are in advanced discussions for the sale of the Edinburgh hotelIain Fraser
Founded in 2007, EDC owned and operated a Holiday Inn Express on Chapel Street in the centre of Aberdeen and a Holiday Inn in Westhill, on the outskirts of the city. It also ran a Holiday Inn Express on Picardy Place in Edinburgh city centre, which is already the subject of “advanced” talks regarding a sale.
Turnover across the three hotels – which employ 136 people, including 117 in Aberdeen – is about £11 million.
FRP partners and joint administrators Iain Fraser and Tom MacLennan will continue to trade the hotels as normal while seeking buyers. There are no immediate plans for redundancies at the establishments.
Fraser said: “The administration presents a rare opportunity to acquire quality hotels with an established trade and reputation in their local markets. The hotels could appeal to an existing hotel operator looking to expand their business, or an entrepreneur keen to enter the hospitality market by acquiring quality properties in prime locations.
“I am pleased to say that we are in advanced discussions for the sale of the Edinburgh hotel, and would urge interested parties to contact us as soon as possible with respect to the Aberdeen properties.”