Revenue at the Old Course Hotel in St Andrews has increased to more than £34 million.
That is a rise of more than £4m, according to accounts for The Old Course Limited for the year to December 31 2022.
The 13.9% increase has been attributed to a full year’s trading following the Covid-19 pandemic.
The hotel was badly impacted by the pandemic, and reported a seven-figure loss in 2020. However it bounced back with a £17m rise in sales in 2021.
The business, which also operates the Duke’s golf course in the Fife town, reported pre-tax profits of £3.1m for 2022. That was down from the previous year’s figure of £5.2m.
The business is also behind the Hamilton Grand development,
Director Herbert Kohler outlined the reasons behind the hotel’s results in his strategic report, published alongside the accounts.
Mr Kohler said: “The underlying trading revenue of The Old Course Hotel, Golf Resort and Spa has increased since the facility remained fully open for the year. A number of luxury apartments have been sold and pricing strategies have improved generally across all business segments.”
The accounts also show property sales accounted for £7.6m of the total revenue, with the other £26.4m coming from hotel operations.
Challenges facing The Old Course Hotel
Mr Kohler added a competitive market and recruitment were among the challenges facing the business.
He said: “Competitive pressure in the UK and international resort markets are a continuing risk for the company, particularly against the backdrop of the current economic climate.
“The company mitigates these risks by investing in superior quality products and services in an effort to distinguish itself from its competitors.
“The weakening pound presents a risk of increased costs to the company. It could also stimulate overseas tourist members visiting the UK.”
Despite the accounts showing an increase in staff numbers, Mr Kohler also outlined potential problems around recruitment.
He added: “Due to global uncertainty following the UK’s exit from the EU, the directors recognise potential risk in the recruitment and retention of casual staff in 2023 and beyond.
“The hotel has continued to review its rates of pay to attract and retain local talent following the departure of the eastern European workforce.”
He said the hotel had “an established network” from which it managed staffing of the resort.
Maintaining a ‘competitive advantage’ over rivals
The company is 99.8% owned by Kohler Scotland, a wholly-owned subsidiary of US-registered Kohler Co.
Its 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.
The R&A owns the remaining 0.2% of the business.
Mr Kohler said the directors were continuing to invest in the resort “to ensure a competitive advantage is maintained”.
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