Mars Sheep Hotels Limited, a company that comprises three hotels in the Scottish Highlands, has called in administrators after falling to pay over £3m of construction costs, Boutique Hotelier has learned.
The company, which is under the ownership of Mumbai-based Mars Enterprise and Hospitality, operates two hotels, The Cluanie Inn and Whispering Pine Lodge as part of the Black Sheep Hotels group.
Documents filed on Companies House show the business entered administration on March 18, with Donald McNaught and Matt Henderson of Johnston Carmichael LLP appointed joint administrators.
The documents also showed that over £3m was owed to construction company Douglas & Stewart UK who spearheaded the renovation works at the three hotels over 2018 and 2019.
The two hotels are both operated under management which will continue under the administration, although both sites are currently closed due to Covid-19 restrictions.
Indian entrepreneur Sanjay Narang runs Black Sheep Hotels and founded the company after a disappointing visit to the Highlands in 2018 spurred him to acquire Craigard Guest House.
The Cluanie Inn at Glenmoriston and the Letterfinlay Lodge, which later become the Whispering Pine Lodge, were acquired soon after.
It was reported that the group invested a total of £12m in acquiring and renovating the properties.