AVIEMORE HIGHLAND RESORT GETS THE GREEN LIGHT

19th June 2009

Macdonald Hotels Limited has today reached agreement with PriceWaterhouseCoopers LLP, the Administrators of Aviemore Highland Resort Limited (in Administration) and subsidiaries to acquire the assets and business of Aviemore Highland Resort adding it to their existing UK wide portfolio. This deal will secure the future of the Resort and the 300 jobs that it currently provides.

Macdonald Hotels will also commit funding to complete the refurbishment of each of the hotels on the Resort and to provide additional facilities including a children’s fun factory, cinema and clubhouse facility at the Spey Valley Championship Golf Course at Dalfaber.

With formal planning consent expected shortly, now that agreement has been reached on the pre conditions attached to the planning consent, the announcement signals a new chapter for Aviemore in the wake of what has been a protracted and difficult development made worse by the recent economic crisis. Over the last 2 years in particular the Resort had been on the brink of closure and being sold off piecemeal because of these planning difficulties.

Commenting on today's announcement, Donald Macdonald, Executive Chairman of Macdonald Hotels Limited said:-

"I am grateful to the Bank of Scotland for the support and commitment that they have shown to Aviemore over many years. Their new owners, Lloyds Banking Group, have also demonstrated, by supporting us in this transaction, an ongoing commitment to Scotland and this development and all who depend on it; opening up new and exciting opportunities for the local economy and all who visit it. It is time to put aside the baggage and troubles associated with this Resort over the past 20 years and for all concerned to grasp the lifeline which the Bank has given us. Tourism is the lifeblood of the Highlands and Aviemore and the Spey Valley offers unique natural beauty and facilities for all to enjoy. Our task, along with the ongoing support of the Cairngorm National Park Authority (CNPA), is to establish the Resort as a world class leisure and conference destination that we can all be proud of and one which will help maximise the full potential of the area.

"I also pay tribute to the significant contribution made to the Aviemore Highland Resort development to date by the Chairman of the Tulloch Group, David Sutherland, and we believe that once the economy improves David will once again be involved in this development.

"I am also pleased that after all these years agreement has been reached with the Highland Council and CNPA with regard to the Phase 2 planning consent without which the future of the Resort would not have been financially viable".

Gerry McGee, Chief Executive, Macdonald Aviemore Highland Resort Ltd, who has worked for Macdonald Hotels for nearly 20 years, added:-

Today's announcement is good news for all concerned in a successful Aviemore Highland Resort. It will secure the 300 jobs currently in place and, as we progress with our development and refurbishment plans, further opportunities will arise. Despite the current economic difficulties the Resort and the village as a whole has much to offer and now that the debate surrounding the planning process is behind us we can look forward, along with the local community, to what I believe will be an exciting opportunity for all who live, work and visit here by providing a true taste of the best Highland hospitality".