The owner of St Andrew’s iconic Old Course Hotel has swung back into profit after the sale of luxury apartments bolstered the firm’s bottom line.
The Old Course Limited saw revenue increase by more than 10%, from £20.5 million in 2018, to £22.7m for the year ending December 31, 2019.
Growth saw the firm move from a pre-tax loss of £642,800 in 2018, to a profit of £233,000 last year.
In addition to the Old Course Hotel, Golf Resort and Spa, the firm is also behind the luxury Hamilton Grand apartment development and The Duke’s golf course in the Fife town.
The Hamilton Grand, comprises 26 residential units with a bar and grill and access to a 20 seat dining room.
In his strategic report, director Herbert Kohler said the underlying trading revenue of the Old Course Hotel, Golf Resort and Spa has increased in the hotel’s occupancy rates and number of hotel guests.
The firm also saw increased sales of luxury apartments at its St Andrews development and reported property sales of £3.5m in 2019, a 90% increase on the previous year of £1.8m.
Revenue from hotel operations rose by 3% to £19.2m over the year.
Mr Kohler said: “Following the emergence of Covid-19 in early 2020, the operations of the company began to be negatively impacted in March.
“The company was required to close its facilities to the public in March and has and has worked to put appropriate safety measures in place to protect employees and guests to enable reopening on August 1.
“Results for the year to date have been negatively impacted and give the uncertainties about the evolution of the epidemic and the responses of governments it is hard to predict the impact on the results of the business for the rest of the year.”
In July, staff at the hotel were warned to expect job cuts as a result of the “significant impact” of the coronavirus pandemic.
Mr Kohler also pointed to uncertainty surrounding Brexit, which he said presents a risk in apartment sales and the recruitment and retention of casual staff “in 2020 and beyond”.
In January, the firm began a programme to revamp facilities at the Old Course Hotel, including plans to expand its conference and events facilities which will become course facing. There will also be the addition of a dedicated events space entrance and extra parking and bedrooms.
In August, local planners approved plans to build a 77-seat glass-fronted bar overlooking the 17th, after no objections were received.
It is hoped construction will be complete when the Old Course plays host to the 150th Open Championship in 2022.
The five-star hotel’s planning application has been approved by Fife Council after no objections were received.
The company’s ultimate parent company is Kohler Co, a well-known plumbing products manufacturer founded in 1873 in Wisconsin.
It has undertaken several refurbishment and extension projects at the hotel in recent years including full replacement of the main building roof, its windows and an upgrade to the ballroom.
The firm has several golf and leisure facilities in the US, as well as engine manufucturing firms and decorative brands.