A NORTH-EAST hotel has fallen into administration after experiencing cash-flow and trading problems arising from the protracted oil sector downturn, which has hit the broader hospitality sector in the region in recent years.
The White Horse Inn, at Balmedie north of Aberdeen, is to be marketed for sale.
Joint administrators Iain Fraser and Tom MacLennan, partners at FRP Advisory, are continuing to trade the business while seeking a buyer.
The hotel is well known for its beach-themed interior design and prominent location in the centre of the village and is “adjacent to a coast characterised by 14 miles of sand dunes”., the administrators noted.
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An extensive refurbishment of the hotel, which opened in 1975, was completed in 2015.
Crude prices tumbled in the second half of 2014, ushering in several grim years for the oil and gas sector, which has seen generally better times over the last year.
The White Horse Inn has a turnover of around £700,000 and employs 26 staff. All of the employees have been retained.
The administrators said: “The hotel has been suffering from cash-flow and trading problems as a result of the downturn in the oil and gas industry which has impacted the hospitality sector for the last few years.”
Mr Fraser said: “The administration of The White Horse Inn presents an attractive opportunity for an existing licensed trade operator or an entrepreneur to acquire an established hotel with full hospitality facilities in a very desirable location.”
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