Previously one of three hotels run by McMillan, which operated for more than 60 years in the hospitality trade, the portfolio was put up for sale after all of the founders’ grandchildren decided to pursue other career paths.
The golf course at the Cally Palace(Image: Colliers)
At the time of the sale in 2022 it was reported that the properties had been bought over by Bespoke Hotels for an undisclosed sum. However, a spokesperson for Colliers said this week it was their understanding that Bespoke manages and operates the Cally Palace but “they’re not the owners”, who wish to remain private.
Colliers described the trading performance of the Cally Palace as “strong” with revenue of more than £2m during the year to December 2024, above pre-pandemic levels. The property also benefits from ancillary income of more than £40,000 per year via a biomass heating system that is contracted until 2036.
In a press release from Colliers, the current owners said the Cally Palace has been a “deeply special” place for them.
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“Its setting, heritage, and loyal customer base have made it a truly rewarding hotel to operate,” they explained. “After a successful and fulfilling period of ownership, we feel the time is right to pass the baton to new custodians who can build on its legacy and lead the hotel into its next chapter.”
Julian Troup, head of the UK hotels team at Colliers, added: “The sale of Cally Palace Hotel & Golf Course presents a rare opportunity to acquire one of southern Scotland’s most iconic hospitality assets.
“The combination of a successful trading history, exceptional setting, and the added draw of the golf course makes it an outstanding investment for a wide range of buyers. With clear potential for further development, this is a great opportunity to take on a legacy property with strong future growth prospects.”