The luxury Gleneagles Hotel in Perthshire has enjoyed a record year, with sales rising by more than £14 million.
The business saw its turnover rise to more than £83.5 million for the year to March 2022, a rise of more than £14m from the year before.
It represents a marked recovery for the five-star venue, which saw revenue fall to £19.7m in 2021 – its lowest since 1993 – because of the pandemic.
New accounts show the hotel’s pre-tax profits dropped slightly from £7m to £4.8m for the reporting period.
In his strategic report, published alongside the accounts, managing director Conor O’Leary said the hotel had enjoyed another strong year.
He said: “The year to March 2023 saw Gleneagles Hotel perform strongly, with revenue and profits exceeding the expectation of the directors and show growth on pre-Covid levels.”
Last year, the Gleneagles Townhouse opened in Edinburgh city centre. Separate accounts show turnover of £8.6m in its first year. It made a pre-tax loss of £3.6m.
Refurbishment programme ongoing at luxury Perthshire hotel
Mr O’Leary said a multi-million-pound refurbishment programme had continued.
He said work had been carried out on the staff accommodation block as well as a new heating system installed and a “continued evolution” of the hotel’s service offering.
He said the upgrades would “further enhance Gleneagles’ position as a ‘glorious playground’ at the heart of the Scottish countryside”.
The accounts show the average number of staff over the period rose from 1,032 in 2022 to 1,148 over the past financial year.
That comprises 618 full-time roles and 530 part-time positions.
The company “actively engages with and develops” its staff, Mr O’Leary said.
Earlier this year, the hotel was named the best in the world for hospitality in the World’s 50 Best Hotels Awards 2023
The panel of 580 people who voted, including hoteliers, travel journalists, consultants, and seasoned luxury travellers, praised the staff for creating “one-of-a-kind experiences”.
Gleneagles Hotel performing well
Looking ahead, Mr O’Leary said the directors continue to monitor factors such as the war in Ukraine and its potential impact on the business.
He added slower economic growth in the UK was another key consideration.
The report adds: “The directors consider the main risk facing the company’s future trading as the potential occurrence of shocks to the European and American economies that could lead to reduced occupancy from corporate and leisure clients.”
However, he said the current financial year shows the hotel is performing well, with occupancy rates consistent with forecasts.
Mr O’Leary said: “The first quarter of the current financial year has seen the performance of the hotel in line with the expectations of the directors.
“Operating margins and profitability are under pressure due to the continued inflationary environment.
“The directors are confident that the quality of the product, the location of the hotel and the level of customer service will be a competitive advantage to maintain and hopefully increase market share.”
Conversation