It’s been four years since Perthshire company Morris Leslie first announced plans for a hotel, lodge development and museum on the outskirts of Perth.
The firm said the plans, on 11 hectares of land neighbouring its head offices at West Kinfauns, had the potential to bring 80,000 people to the area annually.
The vision was for a four-star hotel and a museum that tells the story of transport and vehicles over the last century.
Though the site is still empty, work has carried on behind the scenes.
And in the coming months, the viability of the project will be tested as the site is marketed to operators.
Perthshire hotel plans
Planning permission was unanimously granted by councillors in December 2023 with council leader Grant Laing saying the scheme was “an important step in creating opportunity for Perth and Kinross to make the best of its assets”.
Since then, discussions relating to land required by the local authority for a park and ride scheme continued all of last year.
Graham Ogilvie, group operations director of Morris Leslie, said this is now close to reaching a conclusion. The development site will then be marketed.
Mr Ogilvie said: “The deal with the council is about to be signed so that allows us to then market the consented site for the hotel.
“It will be marketed for sale through a specialist. The network of hotel developers is pretty small.”
The land will be sold to a developer who will build the hotel and rent it to what could be an international hotel brand.
The development of the lodges will be done by Morris Leslie directly. Although best known for its plant hire and auctions businesses, Morris Leslie has significant property interests as well as a lodge development on the Angus/Perthshire border at Brigton of Ruthven.
Mr Ogilvie said the lodges development at Kinfauns will take place when market conditions are right.
“The lodges development doesn’t rely on the hotel – it’s more a case of timing it so confidence levels are right.
“We’re seeing sales levels pick up at Ruthven, so consumer confidence is improving.”
The museum would be later in the plans, with it being funded from profits from the lodges and hotel site sale.
Is project still viable at £50m cost?
The appetite for a multi-million-pound hotel development will be tested when it is marketed for sale.
Initially announced as a £33.8m project four years ago, Mr Ogilvie noted that the prices for construction materials have since increased by more than 50%.
Creating a four-star hotel, which has permission for up to 150 rooms, could now cost in excess of £50m.
Mr Ogilvie said the changing economics mean the company may have to be patient and wait for the market to “regulate”.
He said: “In the past four years, not only are construction costs up, borrowing costs are up as well.
“When we start marketing that site, that will be the real test. Operators will be able to have a look.
“But we also know we might have to play the long game and wait until the market regularises in terms of borrowing and construction costs.”
Conversation