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Nestled on Oban’s picturesque seafront beside St Columba’s Cathedral, the Lancaster Hotel presents a unique opportunity for guests seeking a blend of comfort, character, and convenience. This family-run establishment, operated by the Ramage family since 1963, accommodates up to fifty guests and is renowned for its welcoming atmosphere and attentive service. The hotel’s enviable location offers breath-taking views over Oban Bay and the islands beyond, with many rooms and the dining area overlooking the Firth of Lorne, providing a tranquil backdrop for both leisure and business travellers. Leisure facilities could be reinstated and upgraded. Guests have the choice of two bars, one featuring regular live music and games such as darts and pool. With its proximity to the town centre, harbour, and local attractions, the Lancaster Hotel is ideally positioned to offer memorable stays and repeat business in one of Scotland’s most scenic coastal towns.
Situation
The Lancaster Hotel enjoys a prominent seafront position on the north side of Oban Bay, immediately adjacent to the striking red granite St Columba’s Cathedral. This enviable location affords guests sweeping views down Kerrera Sound and across the Firth of Lorne, with vistas stretching towards the islands of Lismore, Mull, and Ardnamurchan. The property is situated on the Corran Esplanade, a short and scenic walk from the town centre, Oban’s renowned harbour, and key transport links including the railway station and ferry terminal, both just five minutes’ drive away. The hotel’s front-facing rooms and dining areas capture the ever-changing seascape, while its proximity to local attractions such as McCaig’s Tower and the Oban War & Peace Museum makes it an ideal base for exploring the region. Whether arriving from the east or south, guests are greeted by the hotel’s commanding position overlooking one of Scotland’s most celebrated coastal towns.
Business
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. With Oban’s status as a gateway to the Hebrides and its year-round tourist appeal, the Lancaster Hotel represents an outstanding opportunity for investors to realise substantial returns through sympathetic modernisation and creative rebranding.
Property
The hotel is a charming, family-run property with a total of twenty-seven bedrooms, comprising three family rooms, six doubles, ten twins, and eight singles. Most rooms, except for three of the single rooms, benefit from private en- suite facilities including a bath or shower, ensuring privacy and comfort for guests. Seven of the rooms enjoy picturesque sea views, including two family rooms, one twin, one double, and two singles, all overlooking the stunning Oban Bay and the surrounding islands. The hotel’s bedrooms are predominantly non-smoking, with only two rooms permitting smoking. Each room is equipped with modern conveniences such as televisions and tea and coffee making facilities, catering to the needs of today’s traveller. In addition to these rooms, the hotel offers dedicated staff quarters featuring five bedrooms and a shared bathroom, providing practical on-site accommodation for team members. Furthermore, the owner's accommodation is situated at the rear of the property and directly connected to the hotel. This spacious private residence comprises five bedrooms, three bathrooms, two comfortable sitting rooms, a functional office, a fully equipped working kitchen, and a second kitchen in need of renovation. The owner’s accommodation is ideal for those seeking convenience and proximity to the business as it is directly connected to the hotel, allowing for immediate access to daily operations and quick response to any business needs.
The hotel’s historic building, originally the Royal Highland Yachting Clubhouse, spans two floors but does not have a lift, which is an important consideration for accessibility. Beyond accommodation, the Lancaster offers a range of amenities including an indoor heated swimming pool, a sauna, steam room, and a hot tub, enhancing the guest experience. Social spaces include two bars, one featuring games like darts and pool, and the other offering a more tranquil setting with harbour views. The hotel also provides free Wi-Fi, free parking, and is pet-friendly, making it suitable for a wide range of visitors. Its location on the seafront, adjacent to St Columba’s Cathedral and within easy walking distance of Oban’s town centre, harbour, and transport links, further adds to its appeal. While the hotel is functional and well-established, it would benefit from renovation and modernisation to fully realise its potential as a vibrant, comfortable destination in this popular Scottish coastal town.
External
The Lancaster Hotel enjoys a prime waterfront position on the seafront in Oban, just beside St Columba’s Cathedral. The property offers both front and rear free car parking, providing guests with practical and convenient options for safely parking their vehicles throughout their stay. The grounds include a sun terrace for guests to relax and enjoy the sea views, while the well-maintained exterior ensures easy access and a welcoming first impression. The hotel's location means it is only a short walk to Oban’s main attractions, and with ample parking on private land, both leisure and business travellers can enjoy peace of mind and hassle-free arrivals.
