Historic Udny Arms Hotel enters administration as owners seek buyer

The Udny Arms Hotel, a 160-year-old boutique hotel in Newburgh, Aberdeenshire, has entered administration in a bid to secure a sale of the business and preserve employment following mounting financial pressure linked to legacy debt.

Kevin Mapstone of Begbies Traynor was appointed administrator on 18 December 2025 after the hotel’s owners concluded that a formal insolvency process offered the best prospect of safeguarding jobs and maximising value while a new owner is sought.

Founded in 1865, the four-star, 12-bedroom hotel is a longstanding fixture in the local tourism and hospitality market and operates an award-winning restaurant and the Trellis coffee shop, both of which continue to trade on a business-as-usual basis during the administration. All existing bookings are being honoured, and there has been no interruption to services.

The hotel underwent a full refurbishment in 2023, a significant investment that enhanced its accommodation and food offering but did not resolve underlying balance sheet pressures arising from historic liabilities. The administrators said the business remains operationally viable and benefits from a strong reputation, loyal customer base, and prominent location near the Aberdeenshire coast.

Begbies Traynor is overseeing the trading and marketing of the hotel while engaging with potential buyers, with the stated objective of completing a going-concern sale that could preserve up to 40 full-time and part-time roles.