(Image: Crerar Hotels)
The Crerar hotels portfolio, including nine properties in Scotland, has been put up for sale less than four years after it was acquired by private equity player Blantyre Capital and partner Fairtree Hotel Investments.
There has already been interest from domestic and international buyers, including hotel operators, private equity players and family offices.
The Crerar hotels business, which now employs about 450 people in Scotland and 500 in total including its hotel in the Lake District, was bought by Blantyre Capital and Fairtree Hotel Investments in a deal announced in March 2023.
Veteran Scottish hotelier Paddy Crerar, who built the business, said then that the sale of the group had come “far earlier than thought” as he described the acquisition by Blantyre Capital and Fairtree Hotel Investments as “cracking”.
The Crerar hotels portfolio comprises 589 rooms across the 10 hotels, which range from 42 to 100 rooms, and includes landmark properties such as The Glencoe Inn and Loch Fyne Hotel & Spa at Inveraray.
Also in the portfolio are the Oban Bay Hotel, the Isle of Mull Hotel & Spa at Craignure, the Balmoral Arms at Ballater on Royal Deeside and the Golf View Hotel & Spa in Nairn, as well as Thainstone House in Inverurie.
The portfolio also includes Daffodil Hotel & Spa in the Lake District and Dunkeld House Hotel and Fonab Castle in Perthshire, which were added as a result of the acquisition by Blantyre Capital and Fairtree Hotel Investments.
Property agent Savills, which highlighted Scotland’s “global appeal”, has been appointed by Blantyre Capital to market the portfolio for sale.
The portfolio is being marketed for sale as a whole, but Savills is also open to sub-portfolio or individual asset sales.
Savills told The Herald: “Early indications of interest are from a mix of domestic and international buyers, including hotel operators, private equity and family offices. Scotland has global appeal and with [circa] 40 million people globally claiming ancestry to Scotland, there is exponential interest in acquiring hotels in the region.”
The property agent, which describes the portfolio as a “collection of 10 luxury country house hotels”, anticipates a call for interested parties to come forward by the end of November.
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Savills noted Blantyre Capital Limited had undertaken a refurbishment programme across several of the hotels, saying this had enhanced the guest experience and operational performance and established a “platform for continued growth”.
It declared that the Crerar hotels portfolio “represents a significant presence within the premium end of the hotel market, with its Scottish properties accounting for 14% of luxury rooms in the Scotland north regional submarket”.
Savills added that the opportunity is “underpinned by the strong performance of Scotland’s hotel sector”.
It flagged its research showing revenue per available room (RevPAR) in the Scottish hotel sector had increased by 60% since 2019, the third-highest increase in Europe.
Fonab Castle in Pitlochry. (Image: Crerar Hotels)
Savills added that, in the 12 months to April 2026, Scotland’s RevPAR reached £100, with growth since 2019 double the level recorded in England.
Luxury hotels have continued to outperform other hotel classes, supported by average annual average daily rate (ADR) growth of 10% since 2019, Savills noted.
The property agent added: “Demand is also being driven by high-spending international visitors, particularly those from the US, who account for 22% of Scotland’s overnight visitors and 37% of the country’s total tourism spend.”
Steven Fyfe, director of hotel capital markets at Savills, said: “The Crerar hotels portfolio represents a rare opportunity to acquire a substantial portfolio of luxury country house hotels in some of the UK’s most sought-after destinations. The portfolio combines high-quality assets, an established operating platform and a robust income stream with clear potential to drive further performance through targeted investment.”
He added: “Scotland’s luxury hotels continue to benefit from their appeal to high-spending international visitors, particularly those from the US, Middle East and growing inbound markets from East Asia.”
Referring to Edinburgh and Glasgow airports, Mr Fyfe declared that the recent announcement of “another round of substantial investment into the two main international airports” that support the tourism economy is “testament to the region’s appetite to enhance the guest experience and continually improve the existing infrastructure”.
He said of Scotland: “Its outstanding scenery, historic country houses, whisky distilleries and world-renowned golf offering attract visitors seeking culture, heritage and a personal connection with the country. Against this backdrop, the Crerar hotels portfolio provides an incoming owner with a strong platform from which to capture further growth in Scotland’s luxury hospitality market.”