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Perth boutique hotel could be built with prison labour

It comes after Perth and Kinross Council agreed to sell its 1-5 High Street building for £1.

1-5 High Street exterior, a traditional three storey building with turrets close to River Tay
The former council base at 1-5 High Street, Perth, could be converted into a new boutique hotel. Image: Kenny Smith

The developer turning Perth’s former council chambers into a boutique hotel says he wants to hire prisoners to help with the construction.

Nassar Khalil is the chief executive of Rogue City Hotel Group which has acquired the building at 1-5 High Street Perth.

Councillors voted to offload the landmark in a controversial £1 deal two years ago.

The lease they agreed would give the new owner the opportunity to buy it for £1 once work is completed.

Plans to turn 1-5 High Street into a boutique hotel with 73 rooms – the majority of them suites – are expected to be submitted to Perth and Kinross Council by the end of this month.

But Mr Khalil has now revealed he wants to give prisoners from HMP Castle Huntly in the Carse of Gowrie a key role.

Nassar Khalil portrait
Nassar Khalil. Perth. Image: Supplied.

He said: “Because Perth and Kinross has one of the open prisons, we intend to give a lot of employment to people in Perth including prisoners who can come in for the day and do some work in the construction phase of the build.”

Prison not consulted on Perth boutique hotel plan

Mr Khalil admitted he had not yet approached the Scottish Prison Service with his proposal.

But he insisted he is committed to it.

“I’m passionate about those things,” he said.

“It goes back to when we won the bid and it was part of our submission.

He added: “My plan has always been to help where I can – both the city and the people around the city.

Castle Huntly exterior
Could prisoners from HMP Castle Huntly build Perth’s new boutique hotel? Image: Kenny Smith/ DC Thomson

“It’s what keeps me going. It’s not just about making a profit; it’s about making a difference to people’s lives.”

The Scottish Prison Service (SPS) said it was unaware of the plan so was unable to say too much.

However a spokesman did say: “We are always supportive of working with partners, including private, public, and third sector, to support the skills and employability of those in our care.”

Perth boutique hotel will be step up from ‘bog standard’

Mr Khalil is both chief executive and founder of Rogue City Hotel Group, which is part of the Henley Group.

Rogue City Hotel Group’s first hotel Dunalastair Hotel Suites in Kinloch Rannoch is currently on the market for £3.25 million.

Dunalastair Hotel Suites exterior, Kinloch Rannoch
Dunalastair Hotel Suites in Kinloch Rannoch. Image: Graham + Sibbald

The firm is also planning to open the Wellington in Glasgow’s Merchant City and the Hobson in Cambridge in early 2025.

But Mr Khalil says Perth is the plan that excites him most.

“I’m going to call it The Capital, celebrating its history because Perth used to be the capital city,” he added.

“I want a high-end boutique hotel in Perth so that big investment firms can have offices there and know that when people visit they don’t have to stay in bog-standard mainstream budget hotels.”

He said his plans would preserve the heritage and character of the building.

1-5 High Street exterior, Perth
The former council building at 1-5 High Street Perth. Image: Steve MacDougall / DC Thomson.

“The main chambers will be open to the public and we will celebrate all the features of the building and make sure the public enjoys it as best they can,” he said.

“There will be a fantastic restaurant with a fine dining kind of offering that people can come in and really have it as an event.”

Building sale was controversial

Perth and Kinross Council came under fire for the sale of 1-5 High Street when the plans to sell for £1 emerged in 2020.

But officials declared the premises were no longer suitable for “efficient office accommodation”.

And they said developers were set to invest £7m in the building, while the council would provide £1.9m.

The vote to sell went ahead in private in 2022.

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