Council bosses say they’ve pinpointed what went wrong in the battle to save Crieff’s crumbling Drummond Arms Hotel.
The long-derelict town centre landmark is set to be bulldozed in the autumn at a cost of £3 million.
Perth and Kinross Council took ownership of the building last year after the community group set up to preserve it, Drummond Arms Regeneration Ltd, ran out of money.
A new report sets out the path to demolition – and the lessons the council says it’s learned from it.
It salutes the Crieff community’s “willingness to take on significant challenges and their ability to mobilise resources and support”.
But it also breaks down the three key reasons for the restoration project’s failure.
These were:
• The rising costs involved in regenerating the building;
• The Drummond Arms‘ “rapid deterioration” after years of neglect;
• And the lack of available external funding.
Drummond Arms secured over £1m external funding
The findings are contained in a report that went to Perth and Kinross Council’s scrutiny and performance committee this week.
It sets out how the council can better support community-led regeneration efforts, financially and practically, in future.
The report’s author, vacant property development officer Tomas Waterworth, says: “The early stages of the Drummond Arms project showcased the community’s commitment and determination to bring the building back into use.”
And he adds: “The establishment of Drummond Arms Regeneration Limited (DARL) and the initial steps taken to secure and stabilise the building were positive.”
But he says the Drummond Arms’ fate shows the need for “robust” financial planning from the outset and close monitoring throughout.
The project received just over £1m in funding, via several grants.
Sources included the Scottish Government Town Centre Fund.
These were assessed by and channelled through the council.
However, DARL’s hopes of a long-term solution proved too costly and too far out of reach.
Mr Waterworth concludes: “Despite the community’s best efforts, the Drummond Arms project ultimately failed due to the increasing costs involved in regenerating the building, its rapid deterioration and the lack of available external funding.”
Crieff controversy over doomed hotel site’s future
DARL acquired the building in 2019, following a lengthy legal dispute over its ownership.
By then it had already fallen into serious disrepair.
DARL asked the council to take control after the Drummond Arms was served with a Dangerous Building Notice in October 2024.
Demolition work could start in October.
However, plans to tear down the hotel and build affordable housing on the site have not gone down well in Crieff.
The council has since signalled it is open to working with locals on “alternative community-led proposals”.
Crieff Community Council chairman Brian Wilton told The Courier: “We will seek to make the case to Perth and Kinross Council that housing of any description is a most inappropriate and detrimental use of a prime site in the centre of a leading tourist town like Crieff.”
The report also highlights more successful attempts at community-led regeneration.
These include the Millhaugh Sawmill in Alyth, the Birks Cinema in Aberfeldy and the £6m Y centre in the 130-year-old St Andrew’s and St Stephen’s building in Perth.
Conversation