New Posh Hotel

[THE LARK SAINT]

https://www.thecourier.co.uk/fp/news/5390787/perth-luxury-hotel-former-council-chambers/

[MySpazz]

8 hours ago, THE LARK SAINT said:

https://www.thecourier.co.uk/fp/news/5390787/perth-luxury-hotel-former-council-chambers/

Amazing 

The deal, which includes a £1.9m grant for the London-based hotel developer follows on from the building being agreed to be sold for £1 to another developer who went bankrupt to the tune of £67 MILLION

That developer that went bankrupt....has directors who are not part of the new company taking on development!

So in steps, Lock Terrace Ltd who will pocket the £1.9m grant. That grant will be paid for with borrowed money, paid back over 50 years at £85k a year, so £4.5m in total!

A nice bit of business for Lock Terrace Ltd, which was established in 2023 by two former Henley Homes directors –Tariq Usmani MBE and Kashif Usmani.

You couldn't make this stuff up....

Edited December 11, 2025 by MySpazz

[Cagey]

On 12/11/2025 at 3:54 AM, MySpazz said:

Amazing 

The deal, which includes a £1.9m grant for the London-based hotel developer follows on from the building being agreed to be sold for £1 to another developer who went bankrupt to the tune of £67 MILLION

That developer that went bankrupt....has directors who are not part of the new company taking on development!

So in steps, Lock Terrace Ltd who will pocket the £1.9m grant. That grant will be paid for with borrowed money, paid back over 50 years at £85k a year, so £4.5m in total!

A nice bit of business for Lock Terrace Ltd, which was established in 2023 by two former Henley Homes directors –Tariq Usmani MBE and Kashif Usmani.

You couldn't make this stuff up....

What can go wrong? Quite a majority of councillors voted for this and the developers seem a bit iffy.

[MySpazz]

1 hour ago, Cagey said:

What can go wrong? Quite a majority of councillors voted for this and the developers seem a bit iffy.

The investors read like the sort of folk that'd buy Livi!

[MySpazz]

Should say

"That developer that went bankrupt....has directors who are now part of the new company taking on development!"

 

So a company went belly up, then the same directors came back around and scooped 1.9m

[MySpazz]

THIS...

https://www.facebook.com/PerthshireLocal/posts/pfbid02PG7PDrEe4rXeskAX9kx29KQUZnZcFS3oYe4GTMaKaG1TrxQWh5tYy1pXHWDQPfAWl

My post on the £1.9m grant for "The Heiton" sparked a fierce debate about fairness. That emotion is valid. But to understand the real impact on our city, we need to move past the politics and understand the entity. I have done some due diligence on the public record to understand exactly who Perth just bet £1.9m on.

1. Developers First, Hoteliers Second - The narrative is that a "Hotel Operator" is coming to town. The reality is that Rogue City Hotels is effectively the hospitality arm of Henley Homes, a major London-based property developer. Why does this distinction matter? Because developers operate on Asset Value, not just RevPAR. They take difficult buildings (like the Council Chambers), utilise their construction arm to convert them, and then operate them to yield a return on the asset. They are not sentimental operators, they are disciplined asset managers.

2. The "Phoenix" Structure - There has been discussion about "collapsed firms." The public record confirms that a previous entity, Rogue City Hotel Group Limited, entered administration and was dissolved in 2025, reportedly leaving significant debts. The new Perth project is being led by a new entity (Lock Terrace Ltd), directed by the same key figures. In the world of high-stakes London development, using SPVs (Special Purpose Vehicles) that can fold without bringing down the parent group is standard practice. To the local market, a dissolved company looks like failure. To a developer, it is often just risk management. It proves we are dealing with sophisticated financial operators who know exactly how to protect their downside.

3. The "Lean" Philosophy - The brand’s leadership has previously championed a "disruptive" model. Editing out the non-essentials. They tend to avoid heavy Food & Beverage operations, gyms, or spas, the "cost centres" that drag down margin. They prefer technology-led check-ins and partnerships with local restaurants over running complex, staff-heavy kitchens. This means they will likely run this 74-bed hotel with a fraction of the headcount of a traditional 4-star property.

Perth hasn't just funded a hotel, it has funded a highly efficient, unsentimental asset management machine. They are coming with London development capital, a liability-limiting structure, and a hyper-efficient operating model.

[slf]

 Could have housed some dudes in there and got there poll tax off them

 

someone living in the city centre

 

Someone got rodgered and it couldnae be the council.therefore it was us that got stuffed

i wondered did they adequately receive as nice financial remuneration for actively voting on this.

stinks .

where will they park there vehicles 🚗 

[slf]

Do we need another hotel

[Mizfit]

I’d say we do need another hotel. 
The County will be demolished once the police have finished their criminal investigations, and from what information is in the public domain it sounds like it was on its last legs anyway. 
 

The Raddison & Queens are currently hosting Asylum Seekers, and we do not know when the Government will cancel these contracts, if ever. There will also likely need to be some renovation to both those buildings. 
 

Inside the town aye you’ve got a couple of premier inns, travel lodge etc but they’re all in bad nick. I’d also rather a building sitting empty was put to use. 
 

On our doorstep is some of the best scenery in Scotland, and we’re in an ideal location for people taking an overnight trip, we’re 2 hours from Inverness and an hour from Glasgow and Edinburgh. Perth really needs to market itself better to get more money into the town. 

[MySpazz]

ouncil bosses are facing scrutiny over the decision to offer a London-based hotel developer a £1.9m deal to take their old offices in Perth off their hands.

A majority of councillors agreed to the plan in December after they were told there had been no other interest in the empty building at 1-5 High Street.

But a local businessman came forward last week and told The Courier he made two approaches to Perth and Kinross Council in 2023 and 2025.

Craig Wallace says no one at the council was interested in discussing his plans for a mixed-use, co-working space for start-ups and other firms.

The 1-5 High Street building at the centre of the controversy. Image: Kenny Smith/DC Thomson

The building contains the old council chamber. Image: Steve MacDougall/DC Thomson

Much of the property is in a state of disrepair. Image: Steve MacDougall/DC Thomson

The council initially agreed to sell the building to a boutique hotel developer for £1 in 2020.

However, its preferred bidder Henley Homes later went into liquidation with debts of £67m.

Another company, Lock Terrace Ltd, fronted by Henley Homes’ directors Kashif Usmani and Tariq Usmani, is now taking the project forward.

The plan is no longer to open a hotel.

Instead, Lock Terrace has been given planning permission for serviced apartments with no bar or restaurant.

However, the deal still comes with the offer of a £1.9m development grant and the developers won’t have to repay that money.

Instead the council will have to borrow it and repay at a cost to the public purse of £4m.

It claims that’s better value for money than the estimated £143,000 a year cost of maintaining an empty building.

The Courier has asked for a breakdown of that 1-5 High Street spending after the council failed to provide it.

Council bosses have also been asked to compile a report for councillors following Mr Wallace’s explosive revelations.

 

Here are seven that readers of The Courier want answered.

---

1. Why were councillors not told about Craig Wallace’s two attempts to discuss 1-5 High Street building?

Independent councillor Colin Stewart revealed last week that he had asked officials in December if there had been any other interest in the property.

He and other councillors were told no.

The council’s legal chief Lisa Simpson claimed the response had been accurate since there was no other formal bidder.

However, Mr Wallace says he was never even given the opportunity to discuss a formal bid.

And fellow independent councillor Grant Laing said he and colleagues had simply wanted to know if there was any other interest at all.

2. Why was that question answered in a private briefing, and not during the full council meeting?

It’s normal practice for council officers to bring reports to council meetings and for councillors to question them on the contents.

However, Mr Stewart revealed last week that he and colleagues had questioned officers about 1-5 High Street at a private lunchtime session during the last full council meeting in December, and not in the meeting itself when the public was watching.

It’s not clear what else was discussed in this briefing.

3. Why were directors of Lock Terrace also given private briefing with councillors in December?

Mr Stewart revealed councillors also met the Lock Terrace directors during this session.

Again, it’s normal practice for outside parties to state their case in delegations to council meetings.

The Lock Terrace team did so when their planning application for 1-5 High Street was approved, despite flooding concerns, in November.

And the full council heard delegations connected to other matters on the agenda for the December meeting.

4. Why was bidding process for 1-5 High Street not reopened after the council’s preferred bidder went into liquidation?

The council initially agreed to enter a development deal with Henley Homes in 2020.

However, Henley Homes later went into liquidation with debts of £67m.

 

Critics say the council should have gone back to the drawing board at that point.

5. Has council been dealing with Lock Terrace directors or their companies?

Independent councillor Dave Cuthbert said he and colleagues needed to know why officials continued to negotiate with the directors of Henley Homes after it went into liquidation.

The council has stated at various points in the last five years that it is dealing with Henley Homes, Rogue City Hotel Group and now Lock Terrace.

Kashif Usmani and Tariq Usmani are directors of all three.

6. Has there been other interest in 1-5 High Street?

Craig Wallace shared correspondence with The Courier which shows he attempted to speak to officers about the building in 2023 – three years after the council agreed to a development deal with Henley Homes – and again last spring after we reported on the London firm’s demise.

He was told senior members of staff would get back to him.

However, the email trails appear to end there.

And Mr Wallace said on Friday he was still waiting to hear from anyone at the council.

It’s not clear if any other prospective buyers have come forward.

7. Can December’s controversial decision to partner with Lock Terrace be overturned?

Council bosses have been asked to explore whether it’s possible to revisit their December decision.

Councillors said last week they were “not in full possession of the facts” when it came to other interest in the building.

Mr Wallace told The Courier it’s possible the council might incur a penalty if it withdraws from the agreement.

But he says he’d be shocked if that amounts to the £4m which it will have to repay in order to borrow the money for the £1.9m grant

Our 1-5 High Street timeline details the 17-year saga that has led the council to this point.

[Cagey]

Seems extremely dodgy especially as the Usmasi brothers are involved in 3 companies invloved. One called Roage City Hotel Group . The clue is in the name.

Council is giving them a grant of 1.9 million pounds which we don't have cause we have huge debt and it's going to cost £4 million to pay it back.

You couldn't make it up.

[Mizfit]

Council pressing on with the hotel decision. 
To be honest, I’m glad they are. Hopefully it’s a success and we see more renovation in the city centre. 

[Cagey]

Fair enough giving them the building for a pound but to borrow £1.9 to give them at cost of £millions in interest is just crazy.