Islander pulls out of hotel negotiations

Islander pulls out of hotel negotiations 3/4/14

An island-based individual has pulled out of a proposal to take over an empty Stornoway hotel, it is understood.

Initially, the unnamed person had been in talks over reopening the Caledonian Hotel. Then the focus switched to the Crown Hotel which stopped trading in January, it is belived.

However, they are understood to have withdrawn their interest in either premises.

However, other potential operators have approached owners Punch Taverns and an investment plan to refurbish each building is being developed.

The ten-bedroomed Caledonian Hotel on South Beach Street was put up for sale by owners Punch Taverns at the beginning of last year.

Metal security boards over its windows gives the appearance of a run-down inner city trouble spot.

The hotel closed down in July in the middle of a busy tourist season after a temporary lease was not continued.

The Crown Hotel closed for business in January after operators completed a 15 month stint.

Punch Taverns has now drawn up modernisation plans and has withdrawn both hotels from sale with a view to leasing the buildings to private operators.