A north-east hotel has been placed into liquidation with the loss of 68 jobs.
Mercure Aberdeen Ardoe House Hotel and Spa announced it is going into voluntary liquidation with the Covid-19 pandemic proving to be the final straw for the business.
It said the downturn in the local economy due to the collapse of the oil price and its knock-on effect on related-businesses caused the hotel to suffer, however, the onset of the current Covid-19 pandemic meant the business was unable to recover its normal levels of trading, adding to cash flow pressures.
A total of 68 members of staff were employed by the hotel, who have all lost their jobs.
The historic four-star hotel on South Deeside Road in Blairs is a popular venue for functions, conferences and weddings.
It is the fourth hotel in the north-east to close during the pandemic.
Ken Pattullo, business adviser at Begbies Traynor, which is currently working with the directors of Ardoe House Hotel, 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.”
The Ardoe House Hotel is based in a 19th-century Scottish baronial style mansion, set in 18 acres of parkland and has 120 rooms as well as restaurants and bars.
It is the latest in a string of hotels to announce closure in recent months.
It also said that trading conditions had been difficult since the wake of the downturn in the oil and gas industry in the city, and had experienced weaker economic activity.
The Mariner Hotel on Great Western Road announced in August it would not be reopening and the Hilton DoubleTree City Centre hotel also closed permanently in May.
Both cited difficult conditions as a result of the coronavirus pandemic as a reason for closing.
Stephen Gow, vice-chairman of Aberdeen City and Shire Hotels’ Association said the circumstances had made it “impossible” for the hotel to continue trading.
He said: “All hotels have faced almost a year of trading with limited or no profit and hotels in Aberdeen have been particularly hard hit by this as it comes on the heels of the oil and gas downturn.
“Hotels have missed out on leisure travel all summer, business travel all year and now face the prospect of no Christmas events.
“For a banqueting hotel, which Ardoe is, this has made it impossible to continue trading.
“Our thoughts as an association are with the whole team at Ardoe House in this very difficult period and also for the whole supply chain which keeps a hotel and restaurant going.
“The implications of this are, sadly, far wider than the direct job losses at this iconic hotel.”
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