Major blow for Oban as hotel group ceases to trade

Bay Great Western Hotel in Oban is among seven Scottish hotels that have been forced to close after its owners called in the administrators.

The 127-room venue on Corran Esplanade closed last Friday when the parent company, Specialist Leisure Group (SLG), called in administrators due to the impact of COVID-19, with the loss of around 2,500 jobs.

Hotels affected include Bay Tarbet Hotel at Loch Lomond and the Bay Caledonian Hotel in Fort William.

Speaking to The Oban Times earlier this week, BID4Oban chief executive Andrew Spence said he had been shocked to hear the news and expressed sympathy for the affected staff.

‘This is one of the largest hotels in Oban catering mainly for the coach tour market,’ he said. ‘It is important to understand that many who visited this hotel were also visiting hotels in Fort William and Tarbet on two-centre holidays and many of these visitors would have used cafes, pubs and restaurants across the town as well as visiting many local attractions.

‘These are very difficult times for the hotel and tourism industry, and a lot of government support will be needed to ensure their future viability.

‘We have nothing but support and sympathy for all those employed across the company who have lost their jobs.

‘All those involved in tourism are working in the background on recovery plans, however, it is difficult to plan any marketing or support until we have a timescale and guidelines for the hospitality industry opening.’

SLG chief executive Richard Calvert described the situation as ‘heartbreaking’.

‘This is a terribly sad day for employees, customers and commercial partners of the Specialist Leisure Group and its subsidiaries which have entered into administration,’ he said.

‘The effects of COVID-19 on our 117-year-old company and the wider travel industry have been devastating. We have fought tooth and nail to save the group and the jobs of our 2,400 loyal employees. It is heartbreaking the required funding or investment could not be secured to save SLG and our amazing travel brands.’

SLG operated several businesses under brand names including Bay Hotels, Shearings and Caledonian Travel, which have all ceased to trade, due to the impact of COVID-19.

According to a survey carried out by the Federation of Small Businesses, over 36 per cent of Highlands and Islands businesses that have shut down during the coronavirus outbreak fear that they may never reopen. Turn to pages 18/19 for more on this.

‘These are difficult times for the hotel and tourism industry...’