Hotel sale could end Macdonald's dispute with timeshare operator

The long-running dispute at Macdonald Hotels' flagship Loch Rannoch property may be nearing resolution, after it was confirmed discussions to buy the hotel were under way.

After years of wrangling, Timeshare Management Services, which runs the Loch Rannoch Highland Club (LRHC) next to the hotel, is discussing an offer - believed to be between £3m and £5m - for the property.

LRHC members had originally taken Macdonald Hotels to court after they were barred from using the hotel's leisure facilities when Timeshare Management Services took the management contract away from the hotel group in 2003.

Bill Gent, senior vice-chairman of the LRHC committee, said the court proceedings had now been postponed pending the discussions.

"We are merely discussing the possibility of a purchase with Macdonald," Gent said. "If we can reach an agreement, that would then have to be put to the vote by our timeshare members."

Last year Macdonald Hotels failed in a bid to buy back the management of the 85-property timeshare resort, after insufficient owners responded to its take-over offer.

A spokesman for Macdonald said: "There is a mood to try to resolve this issue and I think that will happen this year, but there are other more important priorities for the group - such as the sale-and-leaseback programme on 23 properties."

The Loch Rannoch hotel barred timeshare members from its leisure facilities

Macdonald Hotels threaten to stop any more Scottish investment >>

Macdonalds Hotels to invest £30m-plus in Manchester hotel >>

By Emily Manson

E-mail your comments to Emily Manson here.

Get your copy of Caterer and Hotelkeeper every week - click here to subscribe and save 25%.