Beginning this year, the landmark building overlooking the harbour will undergo a major refurbishment to provide accommodation for personnel involved in the project’s construction.

The redevelopment has been made possible through SSEN Transmission’s significant investment, with principal contractor RJ McLeod set to occupy the property during the construction phase of the Lewis Hub. This will return the facility to active use for the first time since its closure in 2013.

Once construction of the Lewis Hub is complete, the hotel is expected to reopen to the public, bringing long-term benefits to the local community.

The initial phase of refurbishment is scheduled to begin in spring 2026, focusing on upgrading the hotel to provide high-quality accommodation for those involved in constructing the Lewis Hub from summer 2027. This approach enables essential investment in the building’s fabric while ensuring the project remains commercially sustainable beyond the refurbishment period.

The new owners, the Macarthur Family, have been developing and operating accommodation businesses locally over three generations. The family’s long-term vision is for the Caledonian Hotel to return as a fully operational hotel serving the island’s residents, visitors, and business community for many years to come.

Speaking on behalf of the Macarthur family, David Macarthur said: “After more than a decade of closure, the Caledonian Hotel’s absence has been keenly felt on the town’s waterfront. Like many long-vacant buildings, its closure has had a visible impact on the character and vitality of the town centre.

“Restoring a large, historic island hotel – especially one that has stood unused for so long – posed major commercial and operational challenges, and now the support from SSEN Transmission and its contractor RJ McLeod has created a pathway for the building to be brought back into active use.

“We are delighted this project is now coming to fruition. Built on a long‑standing commitment to quality, sustainability and local employment, we expect this development to make a positive contribution to the town and wider community.”

Callum Wardrop, SSEN Transmission’s project director for the Lewis Hub, said: “We are committed to creating a positive legacy through the construction of the Lewis Hub, and our investment that enables the refurbishment of the Caledonian Hotel is a clear demonstration of that ambition.

“Not only will this provide accommodation for personnel involved in the construction of the Lewis Hub, it will also bring the hotel back into long-term use – reflecting our dedication to sustainable solutions that ease pressure on Stornoway’s housing and tourism markets while delivering a valuable community asset.

“Alongside our support for delivering close to 100 new homes at Branahuie, funding for the Arnish Road upgrade, and backing for the expansion of Macaulay College, this is yet another tangible example of how the Lewis Hub and Western Isles HVDC Link are delivering significant benefits for Lewis – reflecting our ambition to promote local economic and social growth.”

Colin Maclean, construction director of principal contractor RJ McLeod, said: “We are happy to be involved with SSEN Transmission and Macarthur family to help regenerate a building that forms part of the frontage of Stornoway.”