Singapore firm MGM Muthu snaps up Scottish hotels

The MGM Muthu deal includes the 66-room Alexandra Hotel in Oban, which has 26 more rooms in the planning. Picture: Contributed
The MGM Muthu deal includes the 66-room Alexandra Hotel in Oban, which has 26 more rooms in the planning. Picture: Contributed
Share this article
0
Have your say

Global chain MGM Muthu Hotels has moved into the Scottish market with the acquisition of a string of establishments.

The major part of the deal sees Highland Heritage sold, from the asking price of offers in excess of £4.5 million, to Singapore-headquartered MGM Muthu.

• READ MORE: Gleneagles Hotel sold by Diageo after 30 years

Highland Heritage was founded in the mid-1970s by Ian Cleaver, a former merchant seaman who built it into an £8m turnover company, which uses a fleet of 16 liveried coaches to shuttle tourists to hotels in Tyndrum, Dalmally and Oban.

Own an innovative start-up? Find out how to win £5,000 for your business

Along with the Volvo coaches, the sale includes four hotels – the 96-room Royal Hotel and 132-room Ben Doran Hotel, both in Tyndrum, the Dalmally Hotel in the heart of Strathorchy, Argyll and Bute, and the 66-room Alexandra Hotel in Oban, which has 26 more rooms in the planning.

The deal, in which Colliers International acted for the seller, comes shortly after the property firm sold another Highland hotel to MGM Muthu – Nairn’s Newton Hotel, which was once popular with film star Charlie Chaplin.

200 Voices: find out more about the people who have shaped Scotland

Alistair Letham at Colliers said: “These sales to a rapidly expanding international operator are a great outcome for everyone involved.”

Click here to ‘Like’ The Scotsman Business on Facebook