The luxury Gleneagles Hotel has rebounded from two years of multi-million-pound losses to record a £50 million hike in sales.
In 2021, revenue at the five-star resort fell to £19.7m – the lowest amount since 1993.
Gleneagles also reported pre-tax losses of £9m, a record deficit.
That followed a £5.2m loss in 2020 when turnover was £66.4m, for a 15-month period.
However, newly filed accounts for Gleneagles Hotels Limited showed a much improved financial situation for the year to March 2022.
Turnover rose to £68.9m, an increase of £49.2m from the year previous, while the business made a pre-tax profit of £7m.
While the business was still dealing with Covid, its impact was much reduced than in the previous financial year.
Gleneagles Hotel bouncing back
In his strategic report managing director Conor O’Leary said: “The year to March 2022 still felt the impact of the Covid-19 pandemic.
“The Gleneagles Hotel did not open until April 26 2021 and operated under numerous restrictions for the first month.
“However, the business performed well over the period, benefiting from the increased demand from guests around the UK and the staycation market.
“Since March 2021, the impact of Covid-19 on the hospitality sector has steadily declined.
“The personal leisure travel market has rebounded as both individuals and businesses are looking to travel and make up for lost time.”
Mr O’Leary said the multi-million-pound refurbishment work continued over the year.
The hotel also opened Gleneagles Townhouse in Edinburgh earlier this year.
He added that the hotel purchased the British School of Falconry which will further enhance its outdoor activity offering.
Upcoming challenges for five-star hotel
Looking forward, Mr O’Leary’s report said staffing continues to be a challenge for the hotel.
The accounts show average staffing numbers for the financial year rose to 1,032 – up from 894 in 2021.
That number comprises 644 full-time staff and 388 in part-time roles.
Wages also rose to more than £22m for the reporting period, up from £16.6m in 2021.
Mr O’Leary said operating margins and profitability are also under pressure due to rising costs of both food and utilities.
“The directors continue to monitor the economic environment and the impact that factors such as the war in Ukraine and the potential for recession in the UK will have on future trading,” he said.
However, he said the hotel’s performance in the current financial year has exceeded directors’ expectations.
Its average daily rate and occupancy levels are both ahead of forecasts.
His report added: “Revenue per available room is at a historically high level as we benefit from the pent-up demand during the pandemic.”
Conversation