Luxury Gleneagles Hotel has suffered a second year of multi-million pound losses.
Newly filed accounts for five star hotel, golf and spa resort show revenue fell by more than 50% last year as it was forced to close.
Due to Covid-19 restrictions, the estate traded for just four months of the financial year to March 31 2021.
Revenue fell to £19.7m – the lowest amount since 1993 – and pre-tax losses reached £9m, a record deficit.
This follows a £5.2m loss in 2020 when turnover was £66.4m, for a 15-month period.
Gleneagles Hotel – Covid immense impact
In his strategic report managing director Conor O’Leary said Covid had an “immense impact” on the business.
But he said demand from customers when open continued to perform well.
He said the use of the furlough scheme last year “avoided the need for large scale redundancies”.
It repaid a £5m Government loan last summer after strong trading.
Mr O’Leary said: “The business performed well during the period of trading, with turnover in line with expectations.
“Being able to retain the majority of our staff has enabled a strong trading period since reopening again on April 26 2021.”
Upon reopening the hotel sought to fill more than 240 positions, including a head of coffee.
The accounts show average staffing numbers for the financial year were 894, compared to 967 in 2020.
The hotel, near Auchterarder, forecasts strong occupancy for 2022 and 2023.
The directors consider the main risk facing the business as “shocks” to European and American economies that could lead to reduced occupancy from corporate and leisure clients.
Gleneagles investments
Despite the challenges posed by the pandemic, investment on the 850-acre Perthshire estate has continued.
Mr O’Leary said: “Our multi-million pound refurbishment programme continued with the completion of our bedroom upgrade programme.
“Winter 2020/21 also saw the refurbishment of our spa, which has relaunched with a new and enhanced treatment menu.
“These renovations are set to further enhance Gleneagles’ position as a ‘glorious playground’ at the heart of the Scottish countryside.”
Gleneagles golf course will host the 2022 Senior Open in July.
It will open a 33-bedroom Edinburgh venue with hotel bar and restaurant in March.
Gleneagles Townhouse is aiming to sign up members for £2,200 a year who will have access to their own lounge, workspaces, rooftop bar and gym facilities.
It is located in the former Bank of Scotland building in St Andrew Square and is Gleneagles’ first venture outside Perthshire.
