Hotel recovers

Gleneagles sees strong trading after losses deepen

Gleneagles: strong trading

Gleneagles Hotel saw its losses deepen in the first 12 months of the pandemic but said its parent company had enabled it to weather the Covid storm.

The Perthshire hotel posted a £8.96 million pre-tax loss for the year to 31 March last year, following a £5.2m loss during the 15 months to 31 March 2020. The operating loss was £6.98m, against £636,000 in the earlier period.

Turnover fell from £66.4m in the 15 month period to £19.7m last year.

It was closed for eight months in 2020, trading only from 15 July to 13 November.

After it reopened on 26 April last year it enjoyed “strong trading” and was aided by liquidity support from its parent company as well as a £5m government loan which was repaid early in August last year.

The hotel said it has “strong forecast occupancy” for this year and next, but said the main risk was the “potential occurrence of shocks to the European and American economies”.

Over the two trading periods the payroll fell from 967 (661 full-time) to 894 (586 FT), with the wage bill decreasing from £23.8m to £16.7m.

Following Brexit, and the risk to staff recruitment, the hotel has reviewed its rates of pay “across hard to fill roles”.

The salary of the highest paid director fell from £322,000 to £155,000. There was no dividend payment, against a £4.65m payout in the previous period.

A multimillion pound refurbishment and upgrade of bedrooms and the spa has been completed.

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