FIRST Minister John Swinney was “very concerned” to learn the owners of Perth’s Salutation Hotel had gone into administration amidst “significant challenges” in the hospitality sector.
The former 17th century coaching inn is Scotland’s oldest hotel and has been an iconic part of Perth’s city centre for centuries.
On August 11, Alistair McAlinden and James Dewar from Interpath were appointed joint administrators to Strathmore Hotels Limited, which owns the historic hotel.
The East Kilbride-based company owns and operates a group of eight hotels across Scotland and the North of England:
- The Alexandra Hotel in Fort William
- The Ben Nevis Hotel and Country Club in Fort William
- The Ben Wyvis Hotel in Strathpeffer
- The Cairn Hotel in Harrogate
- The Cumbria Grand Hotel in the Lake District
- The Nethybridge Hotel near Aviemore
- The Royal Hotel in Oban
- The Salutation Hotel in Perth
The Salutation – affectionately known as The Sally – will continue to trade, as will the group’s seven other hotels, while administrators review options.
According to Interpath, Strathmore Hotels had been “under sustained creditor pressure for a number of months, resulting in it being subject to a winding up petition in July 2026”.
The company has around 410 employees, who will be retained by the administrators to support them.
Joint administrator and head of Interpath in Scotland, Alistair McAlinden said: “The hospitality sector has faced a number of significant challenges in recent years, including rising operating costs, inflationary pressures, workforce shortages and changing consumer spending patterns. 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.
“Our immediate priority is to ensure continuity across the business. We recognise that this news may be concerning for employees, customers, and suppliers. However, we would like to reassure all stakeholders that it is very much business as usual across the portfolio, and we encourage guests to continue visiting the hotels as normal while we explore the best possible outcome for the business.”
Swinney, who is MSP for Perthshire North, has encouraged everyone involved “to do everything possible to safeguard this important Perth business”.
He said: “I am very concerned to hear that the owners of the Salutation Hotel have entered administration.
“The hotel is an important and historic part of Perth city centre, and my immediate thoughts are with the staff and their families who will understandably be worried by this news.
“I welcome the fact that the hotel continues to trade and it is my hope that a sustainable way forward can be found that protects jobs and secures the long-term future of the hotel.
“I will continue to follow developments closely and would encourage all those involved to do everything possible to safeguard this important Perth business.”
SNP council leader and local councillor Eric Drysdale said: “The Salutation Hotel has been part of Perth’s story for generations, so I know many people will be concerned, as I am, by this news. My thoughts are especially with the staff and regular suppliers who are facing this uncertainty.
“However, it is positive that The Salutation remains open while the administrators consider options for the future. I very much hope a positive solution can be found that protects jobs and allows this Perth institution to continue serving residents and visitors for years to come.”
For Perth city centre ward councillor Andrew Parrott, the news came as “a very unwelcome surprise”, especially as the hotel has been so busy recently.
The SNP councillor said: “I know that the Salutation has been very busy recently, particularly with the Royal George being closed for some time, and I can only think that Strathmore Hotels’, the owning group’s, problems arise from the performance of other properties in their portfolio.
“I hope very much that a positive future for the Salutation Hotel can be quickly confirmed because it plays a very important role in the social fabric of Perth and the wider area – and has done for a very long time!
“I am heartened by what I read that, despite the appointment of administrators for the group, business as usual will continue for now. I hope that this statement suggests that while there are obviously serious problems there is the prospect of positive outcomes and that this gives some reassurance to the staff.”
Lib Dem city centre councillor Peter Barrett added: “Despite the administrators’ statement that The Sally and other Strathmore Hotels will continue to operate, this will be a really uncertain and worrying time for staff in Perth. I hope that a new operator can be found and that the staff’s jobs and livelihoods will be protected.
“I have asked the council’s Economic Development team to offer any assistance it can.”
Conservative councillor Chris Ahern was also “very concerned” and added: “I am concerned about the number of staff that potentially are going to lose their jobs. I hope that Strathmore Hotels will be able to find a buyer for the Salutation.”
