FRP pair appointed as Aberdeen hotel business enters administration

FRP Advisory have taken over at Aberdeen-based European Development Company, operator of Holiday Inn and Express hotels in the Granite City and Holiday Inn Express in Edinburgh, after the business was placed in administration.

FRP said buyers are being sought for the business and there are currently no immediate plans for redundancies.

Iain Fraser and Tom MacLennan, partners at FRP Advisory have been made joint administrators of EDC, and will continue to trade the hotels as normal whilst marketing them for sale.

Founded in 2007, EDC owned and operated a Holiday Inn Express on Chapel Street in the centre of Aberdeen and a Holiday Inn in Westhill, on the outskirts of the city, together with a Holiday Inn Express on Picardy Place in Edinburgh city centre.

Turnover across the 3 hotels is around £11 million, with 136 staff employed, 117 of which are in Aberdeen.

Although occupancy levels were high, the administration has been caused by severe cash flow problems caused by the downturn in the Oil and Gas sector, and intense price competition from new build hotels in the Aberdeen market place.

Joint administrator Iain Fraser said: “The administration presents a rare opportunity to acquire quality hotels with an established trade and reputation in their local markets. The hotels could appeal to an existing hotel operator looking to expand their business, or an entrepreneur keen to enter the hospitality market by acquiring quality properties in prime locations. I am pleased to say that we are in advanced discussions for the sale of the Edinburgh hotel, and would urge interested parties to contact us as soon as possible with respect to the Aberdeen properties.”