Highland Coast Hotels, a burgeoning force in Scotland’s luxury hospitality sector, has unveiled a significant £1 million investment across four of its landmark properties in the North Highlands. This capital injection, targeting venues on the renowned North Coast 500 (NC500) touring route and at Plockton in Wester Ross, is part of the group’s broader strategy to enhance the visitor experience and foster year-round tourism growth in the region.
The latest refurbishment drive sees substantial upgrades at Kylesku Hotel, The Haven at Plockton Inn, and Lochardil House in Inverness, building on previous investments such as the reopening of the Brass Tap at Tongue Hotel earlier this year.
At the Kylesku Hotel in Assynt, four new guestrooms have been added to the main building, while the seven bedrooms of Kylesku House have been integrated under the Kylesku Hotel brand. This expansion brings the total offering to 22 rooms for guests visiting the Assynt area this autumn and winter.
The Haven at Plockton Inn has seen a major upgrade to 10 of its rooms and public areas. In a nod to sustainable practices, original beds and furniture have been repurposed, reupholstered, and restored. Further renovations for the remaining guestrooms and lounge at The Haven are slated for early 2027.
In Inverness, Lochardil House’s guest lounge has received a soft interior refresh, now featuring abstract landscapes by local artist Joanna McDonough, which draw inspiration from the Scottish Highland scenery. All 12 guest rooms in the original building and garden wing have also been upgraded.
Kenny McMillan, Managing Director of Highland Coast Hotels, underscored the group’s commitment, stating: “Our latest £1million makeover across four of our six hotels is yet further evidence of how we’re elevating the visitor experience, as well as helping to boost the regional tourism economy throughout the year.
“As Scotland’s newest luxury boutique hotel collection, Highlands Coast Hotels is already establishing its reputation for showcasing world-class Highland hospitality across the North Coast 500 and Wester Ross.
“We’re also committed to providing year-round employment opportunities and community-led hospitality. Our aim is to create lasting professional careers in hospitality that will benefit our small and remote Highland communities.”
Highland Coast Hotels, established in 2021, has rapidly grown its portfolio to six landmark hotels, including the Tongue Hotel, Kylesku Hotel, Plockton Inn, Royal Golf Hotel in Dornoch, Royal Marine Hotel in Brora, and Lochardil House in Inverness. The group, backed by investors like Kings Park Capital and supported by an £8.35 million loan from the Scottish National Investment Bank, aims to be a leading player in sustainable, community-led hospitality along the NC500.
As one of the North Highlands’ largest employers, supporting between 150 and 180 jobs, Highland Coast Hotels focuses on nurturing local talent and providing stable career pathways. The group became an accredited Living Wage employer in May 2022.
The investment aligns with broader trends in Scottish tourism, which has seen steady growth, particularly in “shoulder seasons” (May-June and September-October) as visitors seek quieter experiences and better value. Tourism in the Highlands and Islands is a significant economic driver, contributing to over 20% of local GDP in some areas and generating £756 million in overnight visitor spend in 2024.
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Highland Coast Hotels actively promotes responsible tourism, encouraging guests to travel at a slower pace, engage with local communities, support local businesses, and respect the natural environment. Their sustainability initiatives include reducing single-use plastics, providing electric vehicle charging points, recycling seafood waste, and sourcing produce within a 25-mile radius. This commitment is vital for the NC500 route, which, while a significant economic boost, also faces challenges of overcrowding and infrastructure strain.
Financially, the group has shown positive momentum, narrowing its pre-tax losses from £960,000 in 2023 to £614,000 in 2024, with group revenue increasing by 34% to £9 million over the same period.
Prices for an overnight stay with Highland Coast Hotels this autumn and winter commence from £99 per room, per night, based on two people sharing a standard double room on a bed and breakfast basis.
