Hotel closure sparks wider fears over COVID impact

The Bay Caledonian Hotel in Fort William is among seven Scottish hotels that have been forced to close after its owners called in the administrators.

The three-star hotel on Achintore Road closed last Friday (May 22) 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 overall.

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 fought tooth and nail to save the group and the jobs of our 2,400 loyal employees.

‘It is heartbreaking that the required funding or investment could not be secured to get us through this unprecedented crisis in order to save SLG to 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.

FSB’s Highlands and Islands Development Manager, David Richardson, said: ‘The collapse of Shearings and its Caledonian Hotel is one example of the pain that many are feeling, and it will obviously damage the Lochaber economy, and not just because the hotel itself has closed. It will impact on numerous small, local businesses who will no longer benefit from the spending of the hotel and its guests.

‘Given our highly seasonal visitor-based economy, many are seeing the opportunity to make money this year slip through their fingers as lockdown continues towards the normally busy summer season.

‘The majority of Highlands and Islands businesses are now relying on whatever government support they can get to survive, having followed official advice and closed their doors.

‘Unlocking can’t come soon enough, but all business owners recognise that this can only happen when the Scottish Government deems it appropriate to do so, based on the best expert scientific and medical advice,’ added Mr Richardson.

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

Other hotels in the group affected include the Bay Great Western Hotel in Oban.

Turn to pages 18/19 for more.