Uncertainty Surrounds Perth City Centre Hotel Project After Kinloch Rannoch Venue Enters Administration

The future of a proposed boutique hotel planned for Perth city centre’s former council offices at 1-5 High Street is now uncertain following the financial collapse of a related venture in Kinloch Rannoch. The Dunalastair Hotel Suites, a five-star establishment and part of the Rogue City Hotel Group, recently entered administration with debts exceeding £4 million. This has triggered concerns about the viability of The Capital, a similar boutique hotel project also under the Rogue City Hotel Group umbrella, slated for the historic High Street building.
Adding to the complexity, the Rogue City Hotel Group itself is reportedly being dissolved. This information came from a representative answering calls for various businesses operating from the group’s registered address, who stated that the group “doesn’t exist” and is “in the process of being closed.” She emphasized that no hotels currently operate under the Rogue City brand. Perth Development in Limbo
The 1-5 High Street location has remained vacant since 2008, and the proposed hotel project aimed to revitalize this prominent city centre landmark. Perth and Kinross Council initially faced criticism for its plan to sell the building for a nominal £1 fee but later entered into a development lease with Henley Homes, granting the developer the option to purchase upon completion of the conversion. However, with Henley Homes now in liquidation, the project’s progression has been further complicated. A separate entity, Lock Terrace Ltd, subsequently submitted a planning application to transform the 1870s structure into a 74-room luxury hotel. Local Impact and Next Steps
This news casts a shadow over the future of 1-5 High Street and its potential contribution to Perth’s economy and tourism sector. The council anticipates a decision on the planning application later this year. Although the project was previously promoted on the Rogue City Hotel Group website, the spokesperson clarified that individual hotels within the group’s portfolio are managed by separate companies. She directed inquiries regarding The Capital project to Lock Terrace Ltd, but multiple attempts to contact the company have yielded no response. The unanswered questions leave Perth residents and businesses wondering about the long-term plans for this significant city centre property and whether the vision for a vibrant boutique hotel will ever come to fruition. The situation underscores the challenges involved in complex development projects and highlights the impact of unforeseen circumstances on local economic development initiatives.
The delay also leaves a gap in Perth’s ongoing city centre regeneration efforts. While other projects, such as the redevelopment of the Perth Theatre and the creation of the Mill Street Plaza, have contributed to a renewed sense of vibrancy, the stalled hotel project raises questions about the overall pace and direction of these efforts. The former council offices occupy a prime location, and their continued vacancy represents a missed opportunity to enhance the city’s appeal to visitors and boost local businesses. Residents are eager to see progress on this site and are hoping for a resolution that will contribute positively to the city centre’s future.

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