Huge blow for seaside town as hotel plunges into administration after 160 years

A UK seaside village has been dealt a major blow after a historic hotel entered administration just days before Christmas. The Udny Arms Hotel in Newburgh, Aberdeenshire, has been part of the local community for more than 160 years, but its future is now uncertain and dozens of jobs are at risk.

The four-star hotel dates back to 1865 and is well-known for its coastal views. It has 12 bedrooms, a restaurant with two AA Rosettes, and a coffee shop that was fully refurbished in 2023. But Aberdeen Sheriff Court has now appointed administrators to oversee the business while new owners are sought.

Kevin Mapstone of Begbies Traynor was named administrator on December 18. The move comes after the Kinloch family, who own the hotel, began searching for a buyer in the hope of saving up to 40 full and part-time roles.

Operations will continue for now, with administrators supervising day-to-day running. 

Thomas McKay, managing partner at Begbies Traynor in Scotland, told The National: “The directors have taken the difficult decision to appoint administrators in order to try and save as many jobs as possible and preserve value by finding a new owner for the business.”

He added: “It is obviously a very difficult time of the year for the owners and hotel staff to be facing such uncertainty, but the urgency of the situation required swift action, and they really had little option, given the company’s levels of legacy debt.”

Mr McKay also urged the community to continue supporting the venue during the transition. 

He said: “We really need the support of the hotel staff, who have been fantastic in difficult circumstances, and crucially the help and support of the local community and regular customers who visit the Udny Arms for drinks and meals, who book accommodation and who frequent the award-winning Trellis coffee shop.”

He stressed that the business would continue as normal, saying: “Both the hotel and Trellis coffee shop will continue to trade as normal, operating on a 100% business-as-usual basis. 

“No bookings or stays will be cancelled, and the same high-quality food, drinks and high levels of service will greet customers when they come in over Christmas and into the New Year.”

Potential buyers are now being encouraged to contact Begbies Traynor’s Glasgow office for more information.

The news is a setback for Newburgh. Visit Aberdeenshire describes the village as a place that “highlights the untouched beauty of Aberdeenshire’s coast, with the dramatic Sands of Forvie, sweeping beaches and the half-buried ruins of a 12th-century church”.

The tourism site adds: “The area is alive with wildlife from the UK’s largest colony of eider ducks to hundreds of grey seals basking by the river mouth. 

“It’s also a great spot for outdoor adventure, with stand-up paddleboarding and windsurfing on the waves.

“From golden sands to seal-dotted shores, Newburgh is a peaceful escape on Aberdeenshire’s wild coast.”