Lancaster Hotel Esplanade 27 Room Hotel Oban PA34 5AD £1,950,000 (£72,222/Room)

The Lancaster Hotel in Oban boasts a rich and varied history, offering a unique proposition for prospective buyers seeking a property with character and significant potential. Originally built as Glenlyon House and later serving as the prestigious clubhouse for the Royal Highland Yacht Club, the building was converted into a guest house in 1947 and has operated as the Lancaster Hotel since 1963 under the stewardship of the Ramage family. Over the decades, the hotel has undergone several extensions and improvements, including the addition of new bedroom wings, a cocktail bar, and expanded dining facilities, ultimately accommodating up to fifty guests across approximately 23 bedrooms. The business currently benefits from a prime seafront location adjacent to St Columba’s Cathedral, with many rooms and public areas offering panoramic views over Oban Bay. Facilities include an indoor heated pool, sauna, steam room, and two bars, catering to both leisure and business travellers. While the property is operational and enjoys a loyal repeat clientele, it is in need of comprehensive renovation, particularly in terms of décor and modern amenities, to meet contemporary guest expectations and maximise its trading potential. For an enterprising buyer, there is considerable scope to reposition the hotel within Oban’s buoyant hospitality market by refurbishing guest rooms, revitalising public spaces, and enhancing food and beverage offerings. The hotel’s generous footprint, prime location, and established reputation provide a strong foundation for growth, whether as a boutique destination, a family-friendly retreat, or a stylish base for exploring the West Highlands and islands.