The Salutation Hotel, considered Scotland's oldest established hotel, has entered administration, prompting concerns about its future. The Perth-based property, operated by Strathmore Hotels Ltd, is one of eight establishments owned by the company.
Joint administrators James Alexander Dewar and Alistair McAlinden of Interpath Limited were appointed on August 11, 2026. They have stated that the hotels will continue to operate and that all 410 employees will remain in their positions while a review of the business options is conducted. The administrators noted that the hospitality sector has faced significant hurdles in recent years, including escalating operating costs, inflation, staffing shortages, and shifts in consumer spending habits.
"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," Alistair McAlinden said. He added that the immediate priority is to ensure business continuity and acknowledged that the news may cause concern for employees, customers, and suppliers.
The Salutation Hotel traces its history back to the 17th century, initially serving as a private residence before becoming a coaching inn from 1699 to 1745. In the 19th century, it was a crucial stop on coach routes connecting major Scottish cities. By the 20th century, it was known for its high tea, ballroom, and entertainment offerings.
This situation follows the earlier collapse of Revo Group, Europe's largest hotel operator, which reportedly declared insolvency due to an "economic crisis." Revo cited factors such as wage increases and rising operational expenses, including rent, energy, and food, as contributing to its difficulties.