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 King Malcolm Hotel 'worthless'
Topic Originator: GG741  
Date:   Wed 15 Aug 06:40

The Press is reporting that the owner of the King Malcolm Hotel has written down it's value to zero (along with another property).

“The board is considering its options in regard to the properties within the two subsidiaries, including change of use, it is therefore possible that the impairment could be reserved if a more profitable future for the properties could be found.”

What would you do with it?
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 Re: King Malcolm Hotel 'worthless'
Topic Originator: kelty_par  
Date:   Wed 15 Aug 06:46

It's still operating as a hotel and will be back in the accounts as an asset soon enough though. I'm quite surprised that it has no value actually given the amount of tour buses that visit (mostly from central Europen it would seem) and how many businesses send folk there (my wife's work certainly do).
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 Re: King Malcolm Hotel 'worthless'
Topic Originator: PARrot  
Date:   Wed 15 Aug 12:31

Probably be more profitable as a care home.

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 Re: King Malcolm Hotel 'worthless'
Topic Originator: pars1562  
Date:   Wed 15 Aug 14:00

a care home? the profit is in knocking it diown and building houses.
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 Re: King Malcolm Hotel 'worthless'
Topic Originator: DBS  
Date:   Wed 15 Aug 16:25

Could never understand the logic of the Queen opening it in 1971
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 Re: King Malcolm Hotel 'worthless'
Topic Originator: dafc  
Date:   Wed 15 Aug 19:22

A private care home can command 800 to 1000 pounds per room per week
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 Re: King Malcolm Hotel 'worthless'
Topic Originator: dave67  
Date:   Wed 15 Aug 21:02

Difficult trading conditions has seen the book value of the loss-making King Malcolm Hotel in Dunfermline recorded as zero by its owner Peel Hotels.

The London-based company’s decision to write off its investments in the Dunfermline hotel and the 68-bedroom Strathdon Hotel in Nottingham meant it took a £1.16 million hit in its accounts for the year ending January 28.

The recently filed accounts shows revenue in the hotel group — which operates a portfolio of nine hotels across Britain — fell from £16.79m to £16.08m last year.

Writing off the value of the two hotels meant the firm went into the red, recording a £735,000 pre-tax loss compared to a £575,000 pre-tax profit in 2017.

Company chairman and major shareholder Robert Peel said the King Malcolm Hotel’s profitability had been impacted by a recent rent rise and the end of construction of the Queensferry Crossing.

He said: “The impact of our last rent review has taken its toll so, from a cashflow point of view, it’s been tough, particularly in the winter months.

“The year before last it was camouflaged somewhat because we had the benefit of the bridge’s construction and other major projects like the aircraft carriers, which helped a lot.

“On an underlying basis, like a lot of hotels in the area, we are feeling the pressure.

“At the year-end we took advantage of writing down the value of the leaseholds of the King Malcolm and another hotel in Nottingham to reflect the fact they don’t make any profit.”

Mr Peel said his priority was to renegotiate the lease agreement with the landlord.

“We lease the land and the building and I’ve asked the landlord, a London-based investment company, to drop the rent,” he said.

“We did invest money in the Dunfermline hotel last year – we refurbished 14 bedrooms – it’s not as if we are abandoning ship by any means.

“We’ve got an excellent manager and lovely staff there and we have very good customer satisfaction levels.

“My main aim is to try somehow to de-gear that hotel of some of its costs so that it can be profitable, the most important of which is to try to do a deal with the landlord. In the meantime, writing it off is a prudent step.

“It may be that in a year’s time the hotel is profitable and we have to write something back into our books to reflect that. But it’s only fair to our shareholders that we reflect the true position.”

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