Aberdeen aparthotel to close as energy industry downturn hits hard

George Sell George Sell Uploaded 30 May 2017

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UK: The Micasa ApartHotel on Aberdeen’s Market Street is closing its doors this week.

The property, which opened in 2009, is closing due to the "exceptionally challenging" trading conditions currently facing the energy industry, with the loss of 15 jobs.

A spokesman for the property said: "Micasa has operated successfully in Aberdeen for many years but the downturn in the energy industry has led to a significant reduction in demand for serviced accommodation, resulting in the business becoming unsustainable. We do not see this improving in the short term, especially with hundreds of additional hotel and serviced apartment rooms now available across the city. We are understandably disappointed the business will have to close, especially for the very talented and hard-working team that have run Micasa with such success over the years. We are currently concluding a process of consultation with both staff and clients."

The 34-unit aparthotel is located on the top three floors above the Sports Direct store on the corner of Union Street and Market Street.

The £5 million development is owned by Aberdeen-based Drum Property Group and it has plans to turn the building into private residential accommodation. The spokesman added: "Hotel operations are not core to Drum Property Group, and following the period of consultation and closure of the Micasa business, we intend to convert the 34 apartments into private residential accommodation that will be managed as part of our residential letting portfolio."

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