Sales at the Old Course Hotel in St Andrews increased by more than 200% ahead of The Open returning this year.
Accounts filed for The Old Course Limited showed revenue increased by more than £17 million for the year to December 2021.
Its sales rose to to £25.8m having reported a seven-figure loss in 2020.
The huge increase in turnover came as trading was boosted by the lifting of Covid restrictions.
The business, which also operates the Duke’s golf course in the Fife town, also recorded a pre-tax profit of £3.6m, having reported a £7.1m loss in 2020.
The Old Course Limited is also behind the Hamilton Grand development.
The accounts feature a report from Karger David Kohler, director of The Old Course Limited.
Mr Kohler said: “The underlying trading revenue of The Old Course Hotel, golf resort and spa has increased due to the re-opening of the facility due to the relaxation of Covid-19 restrictions and the sales of a number of luxury apartments.
“Overall revenue has increased by 209.7% compared to the prior financial year.
“In addition, the company benefited from a tax credit of £2,490,200, which further boosted the company’s profit for the year.”
Potential challenges for Old Course Hotel
Mr Kohler outlined the challenges that may face the business.
“Due to global uncertainty surrounding the UK’s exit from the EU, as well as Covid-19, the directors recognise potential risk in the recruitment and retention of casual staff in 2021 and beyond,” he said.
“The weakening pound presents a risk of increased costs to the company but could also stimulate overseas tourist numbers visiting the UK.
“The hotel has reviewed its rates of pay to attract and retain local talent following the departure of the Eastern European workforce and has an established network in order to manage the staffing of the resort.”
Staff numbers down slightly
The average number of people employed by the company fell to 360 over the reporting period. That is a drop of 22 from the year before.
It has 321 staff in hotel operations roles and 39 in administration jobs.
The wage bill also fell slightly, from £5.6m in 2020 to £5.2m.
The company is 99.8% owned by Kohler Scotland, a wholly-owned subsidiary of USA registered Kohler Co.
The R&A owns the remaining 0.2% of the business.
The company’s ultimate parent company is Kohler Co, a well-known plumbing products manufacturer founded in 1873 in Wisconsin.
The firm has several golf and leisure facilities in the US, as well as engine manufacturing firms and decorative brands.
Mr Kohler said the directors had continued to “pursue opportunities to maximise the revenue generating potential of the assets held by the company”.
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