Award-winning historic Newburgh hotel enters administration

The Udny Arms Hotel, a historic boutique hotel in Newburgh, Aberdeenshire, that dates back to 1865, has been placed into administration by its directors in an effort to safeguard up to 40 full and part-time jobs.

Kevin Mapstone of BTG Begbies Traynor was appointed as administrator of the Udny Arms Hotel Ltd on 18 December 2025 by Aberdeen Sherrif Court, following a decision by the Kinloch family, who owned the award-winning hotel, to appoint administrators in order to seek a new owner for the business.

Both the administrators and Thomas McKay, managing partner at BTG Begbies Traynor in Scotland, will now supervise business operations as the venue continues to trade as usual, while efforts are made to swiftly find a buyer for the 160-year-old hotel.

“The directors have taken the difficult decision to appoint administrators in order to try and save as many jobs as possible and preserve value by finding a new owner for the business,” said Thomas McKay, who is overseeing the trade and sale process.

“It is obviously a very difficult time of the year for the owners and hotel staff to be facing such uncertainty, but the urgency of the situation required swift action, and they really had little option, given the company’s levels of legacy debt.”

He added: “We really need the support of the hotel staff, who have been fantastic in difficult circumstances, and crucially the help and support of the local community and regular customers who visit the Udny Arms for drinks and meals, who book accommodation and who frequent the award-winning Trellis coffee shop.

“Both the hotel and Trellis coffee shop will continue to trade as normal, operating on a 100% business-as-usual basis. No bookings or stays will be cancelled, and the same high-quality food, drinks and high levels of service will greet customers when they come in over Christmas and into the New Year.”

The 12-bedroom, four-star hotel, which also holds two coveted AA Rosettes for its restaurant and the 60-cover coffee shop, was fully refurbished in 2023. It is renowned for its outstanding accommodation, restaurant and coffee shop in the picturesque coastal village of Newburgh.

The hotel will continue to honour all bookings and the administrators hope that, with the support of the local community, and continued trade from tourists and visitors, they will be able to attract a new owner quickly and safeguard jobs that might otherwise be lost.

“This is a great venue, with an award-winning restaurant and loyal regular customers. We have every confidence that with an accelerated sales and marketing exercise, we can secure a new owner for this beautiful hotel set in a stunning location,” added Thomas McKay.

Potential buyers and interested parties can find out more about the Udny Arms Hotel and make enquires directly with BTG Begbies Traynor through the firm’s Glasgow office.