The Udny Arms Hotel, a historic boutique hotel in Newburgh, Aberdeenshire, has entered administration, with efforts under way to find a new owner while the business continues to trade.
Kevin Mapstone, partner at insolvency firm Begbies Traynor, was appointed as administrator of Udny Arms Hotel Ltd on 18 December 2025 by Aberdeen Sheriff Court, following a decision by the owners, the Kinloch family.
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Dating back to 1865, the hotel employs up to 40 full and part-time staff. According to administrators, their appointment was made to protect jobs and preserve value while a buyer was found.
The four-star hotel has 12 bedrooms and a restaurant that holds two AA Rosettes, alongside a 60-cover coffee shop. The property underwent a full refurbishment in 2023.
Mapstone along with Thomas McKay, managing partner at Begbies Traynor in Scotland, will oversee operations during the administration process. The hotel and its Trellis coffee shop will continue to trade as normal, with all existing bookings being honoured.
McKay said: “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.
“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.”
He added: “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.”
