Controversial Wester Ross hotel plans put on hold ‘indefinitely’; developer Bealach Ltd steps back from possible five-star project near Lochcarron citing rising costs and Brexit uncertainty
Register for free to read more of the latest local news. It's easy and will only take a moment.
PLANS for a new 40-bedroom hotel near a Wester Ross village have been put on hold indefinitely due to the rising costs as well as concerns over Brexit.
News that initial screening proposals for the site in Kirkton Wood, near Lochcarron, which were submitted to Highland Council sparked vitriolic criticism of the project.
Developers were considering a number of Highland sites in the hope of capitalising on the popularity of the North Coast 500 route.
But local hoteliers were against it as they feared it would hit trade. A number of residents also commented negatively about it.
Gregor Bulloch, of Edinburgh-based developer Bealach Ltd, last week contacted landowner – Lochcarron Community Development Company (LCDC) – to tell it of the change in the plans.
In his email Mr Bulloch said the three founders of the hotel project had been analysing it in detail as it was at a critical point where they would have to invest significant funds to take it forward.
He said: “We also had a third party provide a detailed financial review for us prior to the formal funding round.
"From a financial perspective, the business case has been impacted by rising build costs and operational costs as well as material risks of Brexit and staffing.
“The interest rates we were being offered by those banks we were in discussions with were also higher than originally anticipated. These factors combined have limited our ability to create the hotel we had in mind when we started the project.”
Mr Bulloch said with these factors in mind they had chosen to put the project on hold indefinitely and added: “We are going to consider other options but for now, please assume no further work will take place.”
In his statement Colin Sharp, the LCDC chairman, said: “I hope those that saw fit to launch unjustified and inaccurate assaults on the character and integrity of the directors, volunteers and employees of LCDC will be gracious enough to set the record straight.”
Bell Ingram Design, the agent acting on behalf of Bealach Ltd which originally submitted Environmental Impact Assessment Screening Option to the council, has also clarified an error in the document.
Director Iain Cram said the inaccuracy had caused concern for residents and added: “We can confirm that absolutely no agreement has been entered into for the sale of the land in Kirkton Woodland with any party to our knowledge.
"All that has been agreed is that we would have permission to make such enquiries as are necessary to establish whether the site at Kirkton Woods is suitable for our intended purpose.”
- Click here to read more Ross-shire Journal news.
