Luxury Fife hotel The Old Course made a pre-tax loss of more than £1 million last year.
New accounts filed at Companies House for The Old Course Ltd showed a steep drop in turnover from £34.1 million in 2022 to £28.2m last year.
As well as owning the five-star hotel and spa in St Andrews, the business also operates the town’s Duke’s golf course.
Another arm of the company has been the development and sale of luxury apartments inside the Hamilton Grand building, which overlooks the 18th green of the Old Course.
The major local employer recorded a pre-tax loss of £1.4m in 2023. This follows a £3.2m profit in 2022.
Reasons for loss in financial year
The Old Course said there were several reasons for the swing to a loss.
The strategic report within the accounts said: “This is due in part to 2022 being an exceptional year in terms of hosting The Open Golf Championship in July 2022 and also the sale of the remaining units of Hamilton Grand luxury apartments.
“Utility costs in 2023 were also significantly higher than 2022 as a result of coming off a fixed rate contract.”
However, the company, which is 99.9% owned by USA-based Kohler Co, said revenues from the hotel actually increased last year.
It adds: “The underlying trading revenue of The Old Course Hotel, Golf Hotel and Spa has increased with pricing strategies improved generally across all business segments.
“Revenue has increased by 7% from regular trading activities.
“However, the impact of Hamilton Grand apartment sales in 2022 show that revenue has decreased by 17% compared to the prior financial year.”
During the financial year the business had an average monthly workforce of 472 staff.
Investments at Old Course Hotel
There has been an ongoing series of investments and improvements made at the hotel in recent years, including the hotel bedrooms and spa.
In November 2021, the hotel launched a new restaurant and bar called the Swilcan Loft, named after the Swilcan Bridge, one of golf’s most famous landmarks.
In April the hotel unveiled a new outdoor seating area, overlooking the 16th green and 17th tee at the Old Course, featuring dining pods.
In May this year, the Jigger Inn pub, situated beside the hotel, reopened after a refurbishment.
Often described as the “most famous 19th hole in golf” the venue, which dates back to the 1850s has welcomed many famous faces over the year.
Updates include a refreshed interior, but original features like the brickwork and the railway booth seating remain.
Signed major winners’ caps have returned above the bar.
The R&A owns 0.1% of The Old Course Limited.
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