Luxury Perthshire hotel Gleneagles’ revenues passed more than £1 million a week for the first time as it continued an extensive refurbishment programme last year.
Newly published accounts show Gleneagles Hotel Limited’s sales increased by more than £4m from £51.2m in 2017 to £55.3m for the year ending December 31.
Profits fell from £505,000 in 2017 to £55,000 last year.
In his strategic report, finance director David Kemp noted the refurbishment of several areas of the five star resort last year.
He said: “The development and performance of the business during the year was in line with expectations. The current business continues to see positive trading conditions.
“Our multi-million pound refurbishment programme is continuing with the recent opening of our intimate new meeting and event space Ochil House, continued refurbishment of our food and beverage offering at the Dormy Clubhouse, redevelopment of our golf retail shop offering and further refurbishment of the hotel’s room stock.
“Alongside other current developments, including renovation of our flagship Strathearn restaurant in 2019, these renovations are set to further enhance Gleneagles’ position as a ‘glorious playground’ at the heart of the Scottish countryside.”
Gleneagles Hotel and its three golf courses were sold by Diageo to private equity firm Ennismore in 2015 for a price believed to be around £150m.
The company’s 2017 accounts revealed Gleneagles took out a £66.4m loan as its owners paid themselves a £63m dividend.
In 2018 the dividend payment was £4m. Interest payments on bank loans during the year rose from £1.3m in 2017 to £1.7m.
Mr Kemp said the health of the world economy impacted demand.
He added: “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.”