Investment in Perth's hotels strengthens city centre visitor offer

New investment in two of Perth's long-established hotels is set to increase accommodation capacity, enhance visitor facilities and strengthen the city's appeal as a destination for leisure and business tourism.

The developments, which include a seven-figure transformation of the historic Royal George Hotel and a £90,000 expansion of the Grampian Hotel, represent a welcome commitment to Perth's hospitality sector, with benefits extending beyond the hotels themselves to the wider city centre economy.

Perth has long enjoyed an enviable location at the heart of Scotland, with excellent transport connections, a strong cultural and heritage offer, and easy access to some of the country's most popular visitor attractions.

However, the availability of high-quality accommodation has historically been recognised as an area for improvement. The Perth City Plan identified a shortage of four- and five-star hotels as a constraint on the city's ability to maximise opportunities from business tourism and higher-spending visitors.

With investment in accommodation now gathering momentum, the city is better placed to develop its appeal as an overnight destination, encouraging visitors to stay longer and spend more with local businesses.

A new chapter for the Royal George Hotel

One of Perth's most recognisable hospitality landmarks, the Royal George Hotel is preparing for a major transformation following its acquisition by Scottish hospitality group, Buzzworks.

Overlooking the River Tay, the 46-bedroom hotel has welcomed visitors for more than 250 years and has been owned by Eddie Anderson for the past 26 years.

The acquisition, expected to complete in January 2027 reopening later in the year, will mark Buzzworks first venture into Perthshire and will be followed by a seven-figure redevelopment programme.

Plans include the refurbishment of bedrooms, restaurant and guest spaces, the creation of a new pub and improvements to the hotel's historic ballroom. Renowned hospitality designer Jim Hamilton has been appointed to lead the transformation, which will balance the building's heritage with a contemporary hospitality experience.

The investment represents a significant vote of confidence in Perth's visitor economy from an established Scottish operator, with further employment opportunities anticipated when the hotel reopens.

Grampian Hotel expands accommodation capacity

Elsewhere in the city centre, the Grampian Hotel on York Place is undertaking an ambitious expansion that will more than double its bedroom capacity.

Owner Kashiram Bhandari, who reopened the hotel in January 2021 following an extensive refurbishment, will invest approximately £90,000 in integrating the neighbouring Heidl Guest House, which he acquired in 2023.

With the business reporting summer occupancy levels of up to 90%, the expansion reflects the confidence in the city's accommodation market.

The redevelopment will increase the Grampian's accommodation from 13 to 27 bedrooms, while also providing a restaurant, bar and function room capable of seating 120 guests. These enhanced facilities will allow it to cater for a wider range of guests, including international leisure visitors and business travellers, as well as providing a local offer for weddings, celebrations and private functions.

The latest project builds on an earlier investment of approximately £500,000 in refurbishing the hotel's bedrooms and public areas.

Building on Perthshire’s reputation for quality

The latest developments complement the work of established independent hoteliers who have consistently invested in the area’s accommodation offer.

Among them is the award-winning Parklands Hotel, overlooking the South Inch in Perth, which has been owned and operated by Scott and Penny Edwards since 2003. The 15-bedroom, four-star hotel has built a strong reputation for quality accommodation, dining and personal service, winning Scotland's Best City Hotel at the Prestige Hotel Awards in both 2019 and 2022. A commitment to ongoing investment in the property – at least £30,000 each year - has ensured that its bedrooms, dining facilities and guest experience continue to meet the expectations of today's visitors. Read more about their investment.

This confidence in hospitality investment extends across Perthshire. In 2025, Crieff Hydro completed a £5 million redevelopment of its food and beverage facilities, creating six new bar and restaurant spaces. Led by the sixth generation of the Leckie family, the project represents one of the largest single investments in the history of the renowned independent hotel business.

Creating A Sustainable Tourism Destination

Across Perth and Kinross tourism supports approximately 8,200 full-time equivalent jobs and generates £641 million in economic impact. To ensure a sustainable industry, the Perth and Kinross Tourism Strategy 2025–2030 identifies investment and infrastructure as a priority.

The developments here underline the continued importance of private sector investment in maintaining and improving Perth and Kinross's visitor accommodation and hospitality offer.

As Perth builds on its cultural attractions, events programme and city centre development ambitions, a strong and diverse accommodation sector will be essential to converting visitor interest into longer stays, increased local spending and sustainable economic growth.

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