Scottish hotel Udny Arms enters administration as owner seeks buyer

The operator of the Udny Arms Hotel has entered administration after the appointment of Kevin Mapstone of Begbies Traynor on 18 December, placing the future of the long-running Aberdeenshire hospitality business under formal insolvency protection.

The four-star hotel, located in Newburgh on Scotland’s northeast coast, traces its origins to 1865 and operates from a single site comprising 12 bedrooms alongside a restaurant and coffee shop that has earned two AA Rosettes. The business has built a reputation as a destination venue, with recent capital investment including a refurbishment of its 60-cover coffee shop in 2023.

The appointment was made by Aberdeen Sheriff Court, following a decision by the hotel’s owners to pursue a sale process in an effort to preserve the business and protect employment. Around 40 full-time and part-time roles are associated with the operation.

Administrators said the hotel and its coffee shop will continue to trade on a business-as-usual basis while options are explored, with bookings and stays unaffected during the marketing period. The administration is intended to stabilise operations and maintain value while a purchaser is sought for the business as a going concern.

Begbies Traynor is overseeing the sale process from its Glasgow office, with interested parties invited to make enquiries as the administrator works to secure a transaction that would allow the hotel to continue under new ownership.