Islay House to reopen as luxury hotel in spring 2026

Islay House in the Scottish Highlands is expected to reopen as a full-service luxury hotel in spring 2026, following a recent sale to a US-based Scottish family.

The Georgian mansion was built by Hugh Campbell, Laird of Cawdor, in 1677 at the head of Loch Indaal, which is now surrounded by nine of Scotland’s celebrated whisky distilleries.

The property belonged to the Campbell family for several decades before it switched hands to the Morrison family, who continued to expand the house. In the mid-20th century, it was a sporting lodge before being transformed into a hotel in the 21st century, which has since had multiple owners.

The hotel was sold in October this year by a consortium led by Steven Haag to the California-based Payne-Clark family for an undisclosed sum. The family are descendants of John Frost, the head gamekeeper at the house in the late 19th century.

Earlier this year, it was reported the 13-room country house hotel was being marketed at £3m by Knight Frank.

Islay House will embark on its extensive refurbishment in early 2025 and operate on a restricted bed and breakfast basis until spring 2026.

Plans are in place to open a dedicated whisky bar and an all-day dining concept, as well as to restore the Victorian kitchen and the walled garden.

Richard Ellison, managing director at hotel management company 7H Hospitality, said: “This project represents an exciting new chapter for Islay House. Our client’s vision is to lovingly preserve and return Islay House to its original glory and create a destination that not only celebrates the house’s heritage but also offers unparalleled luxury and modern comforts to meet the expectations of today’s travellers.

“The Payne-Clark family will play a personal role in driving and designing the end result and, along with Steven Haag’s support, enjoy the journey that this project and all that Islay has to offer.”