A historic Scottish hotel has been sold to an English firm making its first entry into the market north of the Border.

The 33-bedroom hotel with spa, indoor swimming pool and two function suites was sold in an off-market deal through the specialist hotels team at Colliers.

Balgeddie House Hotel in Fife was sold by Solley Hotels to Smar Hotels & Leisure Ltd.

It is the firm’s latest deal for the family-owned hotel group after handling the King's Manor Hotel in Edinburgh last month.

The hotel on the outskirts of Glenrothes last changed hands in 2003. The addition of the Nairn function suite with a 220-capacity, along with the views of the Lomond Hills from its four acres of grounds, "cemented the hotel’s reputation as a popular venue for weddings and events".


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The hotel which has been trading under the Best Western brand is also popular with business guests due to the number of corporations located nearby, as well as strong demand for its spa and leisure facilities at the weekend.

Historic Environment Scotland said that the 1936 "Balgeddie House was built as a birthday gift for a member of the Nairn family (commissioned by Major Sir Robert Spencer Nairn) and is reported to have wooden flooring obtained from a decommissioned minesweeper". 

The sale leaves Solley Hotels with its final hotel, the popular Pitbauchlie House Hotel in Dunfermline, which is also now available for expressions of interest through Colliers.

Sam Surani, who also owns the Manor Hotel in Exmouth, said: "This is a very exciting time for us stepping into the Scottish market. Balgeddie House Hotel is already a strong business with lots of loyal customers using the venue’s facilities regularly. We’re looking forward to seeing how we can enhance the offering for our customers, creating a wonderful experience in the impressive Scottish location."

Julian Troup, of Colliers handled the sale. He said: "We’re pleased to have managed the confidential sale of another outstanding Scottish hotel asset. The Balgeddie generated competing bids from buyers based in Scotland and further afield as it’s a very well-known hotel and hospitality business in the region. It is an excellent purchase for Smar Hotels & Leisure Limited in their first venture into Scotland.”

"This is Colliers 29th UK hotel transaction this year, which is a 38% improvement on last year, highlighting that buyer confidence is returning on the back of improving economic indicators."

Edinburgh-headquartered legal firm Lindsays advised Solley Hotels on both the Balgeddie House and Kings Manor transactions.

Kenny Gray, partner in the commercial property team at Lindsays, said: "Solley Hotels have a great business and we are very pleased to be working alongside them. The sale of Balgeddie House - and the interest in it - highlights very real demand from private and corporate investors keen to extend their reach into Scotland’s independent hotel market."

Thorntons Solicitors acted for Smar Hotels and Leisure Limited in the legal process.