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Taymouth Castle Up For Sale?

Bank Acts As Project’s Financial Woes Worsen

The Taymouth Castle project, which promised a huge boost to the local tourism industry by creating a six-star, £74 million hotel and leisure complex near Kenmore, is in crisis with a major bank rumoured to have stepped in to put the enormous property back on market.

The lofty hopes of the developers – Hotel International Ltd and Taymouth Group – have been dashed by a series of commercial misfortunes that have apparently led its bankers, HSBC, to get involved.

According to investment experts, HSBC is determined to recoup the money it advanced for the purchase of the huge property and the renovation work needed to make the building wind and watertight. 

An inkling of the problems came last month when Comment contacted director John French who was in no mood to explain anything to the local media. “Very delicate negotiations were taking place,” he said, but then he lost his cool. “I do not want to talk to the local press,” he said repeatedly. “I don’t want ever to talk to the press in my life.”

Comment had learned that HIL had suddenly agreed to transfer management of the castle’s 18-hole golf course to the Kenmore Hotel.

According to people familiar with the plight of HIL, there were strong possibilities of reviving the project late last year when a Middle East company, Dubai World, expressed an interest in the scheme. Talks fell through, as had previous promising negotiations with other interested parties. Dubai World, a United Arab Emirate-owned conglomerate, is now said to be interested in acquiring Gleneagles, Turnberry and Loch Lomond golf courses.

More recently this year HIL has apparently been finding it increasingly tricky to meet its bank interest payments to HSBC. Leading Irish investment manager Joe O’Leary is said to have been keen to see the project succeed and pumped in extra funds.

HSBC was unable to provide a comment before our publication deadline.

The huge project should have been opening this spring, but it lost momentum after one of its principal backers, Michael Hall, severed connections with HIL. He told Comment that he was obliged under the terms of his departure not to discuss the reasons.

HIL carried on and spent millions of pounds replacing the castle windows and roof, all of which were in a very neglected state. However, once these essential works were finished, plans faltered to convert the castle, add a new north wing with 72 luxury suites, create a health spa and build holiday lodges in the extensive grounds. One early blow was when the Four Seasons hotel chain pulled out.

There is hope that a new buyer could revive the plans, which were approved in great detail three years ago by Perth & Kinross Council and Historic Scotland.

The A-listed building has been largely unused since the 1970s and part of its east wing was almost derelict. It was the seat of the Campbells of Breadalbane, and played host to Queen Victoria, who said the surrounding countryside and wooded hills were “one of the finest scenes imaginable”.