Strathmore Hotels Ltd, the East Kilbride-based operator behind the Salutation Hotel in Perth, has been placed into administration after months of mounting financial pressure. Joint administrators confirmed on 11 August 2026 that all eight of the company's properties would keep trading and that its roughly 410 staff would remain employed while the future of the business is assessed, according to Boutique Hotelier.
The Salutation, a former 17th Century coaching inn, is the best-known of the group's sites and is marketed by the company as Scotland's oldest established hotel.
What properties does Strathmore Hotels operate?
Beyond the Salutation, the firm's portfolio spans several well-known Scottish and English venues. Its Scottish sites include the Alexandra Hotel and the Ben Nevis Hotel and Country Club in Fort William, the Ben Wyvis Hotel in Strathpeffer, the Nethybridge Hotel near Aviemore, and the Royal Hotel in Oban. In England, the company runs the Cairn Hotel in Harrogate and the Cumbria Grand Hotel in the Lake District.
Why did the company end up in administration?
Alistair McAlinden and James Dewar of Interpath, who were appointed joint administrators, said Strathmore Hotels had endured sustained pressure from creditors over several months, culminating in a winding-up petition lodged in July 2026. McAlinden pointed to broader difficulties facing the hospitality industry as a whole.
"The hospitality sector has faced a number of significant challenges in recent years, including rising operating costs, inflationary pressures, workforce shortages and changing consumer spending patterns."
"Unfortunately, Strathmore Hotels has not been immune to these headwinds and has also experienced sustained financial difficulties, resulting in the appointment of the joint administrators."
What does this mean for staff, guests and suppliers?
The administrators stressed that the priority is to keep operations running smoothly across the group while a longer-term solution is sought.
"Our immediate priority is to ensure continuity across the business."
"We recognise that this news may be concerning for employees, customers, and suppliers."
Guests have been told that bookings at all eight hotels remain unaffected for now, with the administrators describing the situation as largely business as usual while a review of the company's options gets under way.
What is the history behind the Salutation Hotel?
The Salutation traces its roots back to a private residence before it was converted into a coaching inn in 1699, making it one of the oldest continuously operating hospitality buildings in the country. Tradition holds that Bonnie Prince Charlie took a room there in 1745, and the hotel's current main entrance facade was added during the 1800s. According to the hotel's own historical account hosted at the Salutation's history pages, the property has long been promoted as reputedly Scotland's oldest hotel.
The move into administration comes despite an earlier attempt to restructure ownership. A prior report from The Courier detailed plans for a management buyout of the Salutation's owner, indicating that Strathmore Hotels had already been examining structural changes to the business before creditor pressure intensified this year.
What happens next?
The joint administrators have said they will review the options available for the business, though no timetable for a decision has yet been made public. For now, the focus remains on maintaining trading across all eight hotels while that assessment continues.
- Administration confirmed on 11 August 2026 for Strathmore Hotels Ltd
- All eight hotels, including Perth's Salutation, continue to trade
- Approximately 410 employees are being retained during the process
- A winding-up petition was filed against the company in July 2026
- Interpath's Alistair McAlinden and James Dewar are the appointed joint administrators
