Exclusive:Scotland's only dry hotel up for sale over planning issue as owner admits 'negative' impact of alcohol ban
Well-known hotel on market for guide price of £1.25 million
The businessman behind a popular island hotel which faced a backlash for banning the sale of alcohol has admitted the policy had “negative impact” on sales and the ability to recruit staff.
Na’ím Anis Paymán’s firm took over the Stromness Hotel in Orkney during the Covid-19 pandemic, and subsequently relaunched the venue as an alcohol-free establishment, arguing that “societal wellbeing” was more important than “profits for their own sake.”
However, the Stromness business, which is thought to be Scotland’s only dry hotel, has now been placed on the market after Mr Paymán said he was no longer confident about being able to conclude a planned refurbishment in a timely manner.
Mr Paymán, 31, said the firm’s decision not to sell alcohol or permit the consumption of any such beverages on its premises had “no bearing” on its decision to sell the property, but told The Scotsman that the stance had ultimately led to reduced profits.
When he announced the change in October 2021, Mr Paymán reasoned that the sale of alcohol was a “major negative contributing factor to the physical and mental wellbeing of a large proportion of society,” adding that if his stance meant that he was able to “save one life,” it would be worth the financial hit.
However, the policy was met with a mixed response. While some praised the “innovative” approach, others questioned who would book a wedding at a hotel where no alcohol can be bought.
Now, with the hotel on the market at a guide price of £1.25 million, Mr Paymán said the no-alcohol policy had impacted sales, although he stressed the venue was still turning a good profit.
“We have definitely made a lot less in profit than we would have made by selling alcohol, however, this was always a known outcome of our decision not to sell alcohol, and has had no bearing on our decision to sell the property,” he explained. “The hotel has been trading at a very favourable level of profitability even without alcohol sales.”
He said the absence of alcohol sales not only had a “negative impact” on trade, but on the hotel’s ability to “overcome local prejudice for staff not wanting to work at the hotel,” but added: “We have, however, also received many comments from people who were deeply grateful for our decision to put values and safeguarding over pure financial profit.”
The property’s listing on the Rightmove website describes it as “one of the most iconic buildings” on the archipelago, and notes that the three star hotel and restaurant welcomes a variety of guests, including business travellers and tourists.
It adds that the most recent accounts for the firm behind the hotel show that it generated a net turnover of £522,979 for the 12 months to the end of June 2025, and a gross profit of £427,447, with an adjusted net profit “in the region” of £151,000.
The listing also points out that no premises licence is currently held, with any new operator required to apply to Orkney Islands Council for a licence in order to serve alcohol.
Mr Paymán, the sole director of Paymán Holdings 10 Ltd, which owns the hotel, said planning issues surrounding a refurbishment of the hotel were the reason the firm had decided to put it up for sale.
“We wanted to renovate the entire hotel, bring the ground floor back into full use by moving the restaurant and reception to the ground floor, and add more accommodation on the first floor,” he said.
“We have been trying for a year and a half to obtain pre-planning advice to see our plans for the hotel to fruition.
“Unfortunately, despite multiple follow-ups, we have as yet not obtained a response. Given the time it is taking, we are no longer confident that we will be able to conclude the refurbishment in a timeframe that will work for us.”
“We have therefore decided to advertise the hotel for sale to see what potential buyers may come forward.”
However, Orkney Islands Council has said that its planning service has provided assistance and advice to the hotel’s owners on multiple occasions since November 2021, telling The Orcadian newspaper that five applications for listed building and other consents have also been considered and approved, including applications in November and December 2025.
Mr Paymán, who said the hotel had “massive potential,” described it as an “honour” to have helped shape part of its recovery in the wake of the pandemic, and said he was keen to ensure that any prospective buyer of the property would “continue to trade as a hotel open to the community as well,” as opposed to converting it into flats.
He went on: “The business will continue operating as usual in the meantime and we look forward to welcoming our guests in the coming months - the summer is already booking up and starting to look like we’ll have a great season ahead.
“The property has only been on the market for a short period of time, yet we have already had some enquiries and a few offers put forward. We will achieve a sale whenever the right buyer comes along, and the offer is at the level advertised.”
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