The Mercure Aberdeen Ardoe House Hotel and Spa in Blairs – three miles outside of Aberdeen city – is being placed into creditors voluntary liquidation after being hit by the oil industry downturn and restrictions put in place due to the coronavirus pandemic.
The 19th century Scottish baronial style mansion, set in 18 acres of parkland, suffered from the downturn in the local economy due to the collapse of the oil price and its knock-on effect on related businesses. A statement said the onset of the coronavirus lockdown earlier in the year added to cash flow pressures and the business proved unable to recover its normal levels of trading.
Aberdeen and Aberdeenshire aren currently under level 2 restrictions set out by the Scottish Government.
The business, which had 120 rooms as well as restaurants, bars and a spa, employed a total of 68 staff. All have been made redundant.
Ken Pattullo, spokesman for business advisory firm Begbies Traynor, said: “Unfortunately, the hospitality sector has been among the hardest hit by the pandemic with the forced closure last spring having devastating consequences for the Ardoe House Hotel. With Aberdeen currently in Level 2 and coronavirus restrictions continuing, the directors felt the hotel was no longer viable and had no choice but to put the business into liquidation.
“In the face of ongoing uncertainty due to the health measures implemented to help combat the global pandemic, there was no way of saving the business and the jobs it supported; it is sad to see the closure of such a popular hotel.”
A Scotsman travel review of the hotel praised its “warm hospitality” and “spacious, restful and extremely comfortable” rooms. The hotel was built in 1878 for eminent surgeon Alexander Ogston and his family and incorporated many design features inspired by nearby Balmoral Castle. It was converted into an hotel in 1947.
Other luxury Scottish hotels have recently closed their doors, citing increased coronavirus restrictions.
The Old Course Hotel in St Andrews shut this week, while the Gleneagles Resort closed last week, with plans to remain shuttered until the end of January.