A new lease deal is set to be struck over the landmark Carnoustie Golf Hotel as part of the billion pound masterplan around the jewel of Angus’ sporting crown.
The hotel and spa beside the 1st tee and 18th green of the world famous Championship Links has witnessed the crowning of three Open champions.
It opened its doors in 1999, just weeks before Scot Paul Lawrie clinched the famous claret jug in a remarkable final day comeback.
Angus Council owns the Carnoustie courses and the land on which the 106-bedroom hotel sits.
Later this week, councillors will be asked to transfer the current hotel land lease to a new company set up by Carnoustie Golf Links Management Committee.
It is part of CGLMC’s ambition to secure the Angus town’s place on the Open rota.
And it will clear the way for CGLMC to finally complete a deal to buy the distinctive hotel for redevelopment.
What is the current status of the hotel?
A 125-year ground lease over the land the hotel sits on was granted by the council and it has just over a century to run.
The council receives an annual ground lease payment.
Until 2033, it will also receive a profit share based on the turnover of the hotel.
The hotel is currently operated and managed by Bespoke Hotels.
Mineflow Investments Ltd is the current lease holder, but CGLMC has asked for a transfer of the lease to Carnoustie Golf Links Properties Limited.
It is a subsidiary company set up by CGLMC which brokered a deal with Mineflow in April last year to acquire the hotel as a going concern.
The deadline to exercise the option on that deal expires at the end of this month.
No impact on Carnoustie golfers
The council has stressed the move is solely related to the ground lease for the hotel site.
A spokesperson said: “It is important to note that the hotel ground lease agreement relates to Carnoustie Golf Hotel only and is entirely separate from the management agreement with CGLMC Ltd which relates to the golf courses and business.
“The report being considered will seek a decision only in relation to the hotel ground lease.”
Links bosses and council chiefs have been in detailed discussions for more than four years over the future of golf at Carnoustie.
CGLMC has a major investor waiting in the wings and say it is a race against time to put in place the blueprint for the future.
Their plans aim to keep events such as the Open Championship, AIG Women’s Open and Senior Open coming to Angus.
Dialogue between the parties is at a crucial stage.
But in June, Links chief executive Michael Wells expressed confidence a deal could be secured which will see the Open back at Carnoustie before 2030.
A full public consultation would take place before changes are made to the management agreement for Carnoustie’s golf courses.
The hotel lease deal will be the subject of a special full Angus Council meeting on Thursday.
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