Roxburghe Hotel sale falls flat

One of Roxburghe Estate's landmark properties will remain in the hands of the Duke of Roxburghe, after the collapse of sale negotiations this week.

Thursday, 3rd August 2017, 4:37 pm
Updated Tuesday, 12th September 2017, 11:52 am
Roxburghe Hotel and Golf Course, Heiton.

The proposed takeover of the 22-bedroom Roxburghe Hotel and Golf Course, in Heiton, near Kelso by Bespoke Hotels was announced in June.

Bespoke, the UK’s largest independent hotel group, had expressed interest in the hotel’s development potential and the sale to the hotel and golf course, for an undisclosed amount, was due to be completed at the end of July.

But the plans fell through at the last minute after a substantial investor in the sale withdrew.

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Roddy Jackson, chief executive of Roxburghe Estates, said: “I can confirm that the sale of the Roxburghe Hotel and Golf Course to Bespoke Hotels will not be proceeding.

“It is disappointing given the extensive preparatory work and due diligence undertaken and we were informed by Bespoke that a key investor had withdrawn unexpectedly at a very late stage.

“The hotel and golf course has been withdrawn from the market while we review the situation.

“It is therefore business as usual with Inverlochy Castle Management International (ICMI) and Albert Roux continuing their management agreement.”

Last month the Roxburghe Estates confirmed that ICMI would no longer be in charge at the hotel, but assured that the staff at the hotel and golf course would retain their jobs.

In 2010, planning consent was granted for 60 holiday lodges, a new clubhouse and conversion of the existing clubhouse to a 10-bedroom dormy house, all of which stood as a key factor in Bespoke’s strong interest and decision to buy the business.

Announcing the handover in mid-June, the Duke of Roxburghe said at the time: “I am delighted that we have reached agreement with Bespoke, knowing that they have exciting plans for the future and will invest significantly in the business.

“We look forward seeing the Roxburghe grow in the years ahead under new ownership and achieving our long-term vision of a high-quality resort destination.

“We strongly believe the Roxburghe has a secure and successful future under Bespoke Hotels’ management.”

The Roxburghe Hotel first opened as a country house hotel in 1982, then expanded with the development of the region’s first championship golf course in 1995.

The Duke had anticipated that members of the golf club’s benefits and playing rights would remain unchanged.