34 made redundant as Aberdeen hotel closes

The owner of an Aberdeen city centre hotel has been put into liquidation - with the loss of 34 jobs.

The Hilton Garden Inn on St Andrew Street had been experiencing "challenging trading conditions for several years following the downturn in the oil and gas industry", according to a statement by administrators Blair Nimmo and Geoff Jacobs of KPMG LLP.

The 100-bedroom venue was run by The St Andrew Street Hotel Company Ltd, which was founded in 2008.

The statement said: "With weakened economic activity in Aberdeen and an oversupply of hotel accommodation, the company experienced funding shortfalls at various times and required additional support from its shareholders in order to continue trading.

"Despite a restructuring involving several of the company’s key stakeholders and taking steps to reduce trading and overhead costs, the Company was still unviable.

"The hotel closed in March 2020 when Covid-19 lockdown measures were introduced in the UK, which had a significant impact on the company’s cash position.

"The directors were unable to secure new funding and despite marketing the leasehold interest in the hotel, there was no sale secured therefore the directors took the difficult decision to place the company in liquidation.

"At the time of the appointment, the company employed 34 people who have been on furlough leave. Regrettably all have been made redundant following the liquidation appointment as the business will not be able to reopen and trade."

Mr Nimmo said: "Unfortunately, following a prolonged period of challenging trading, lockdown was too big a challenge for the hotel in a local market already adversely impacted by oversupply.

"The current difficulties within the hospitality sector are well documented and we have been working with several businesses recently with similar challenges.

"Regrettably, some insolvencies in this sector are inevitable, and we are working with all affected employees and the relevant government agencies to ensure a full range of support is available for all impacted employees."