Trump’s Turnberry hit by foreign currency charges
Donald Trump’s Turnberry hotel and golf course returned to operating profit as Covid restrictions were lifted, but fell to £14.7 million loss after fluctuations in currency and other charges.
Its most recently filed accounts for the 2021 calendar year show revenue almost doubled to £13.1m (2020: £6.7m) on the back of visitors returning when the hotel reopened in April of that year.
There was a strong rise in staycation visitors and director Eric Trump, the former US president’s son, saw this as an opportunity to help grow the domestic market.
Golf Recreation Scotland, the parent company for the Turnberry resort, reported a £1.09m operating profit against an operating loss of £3.08m in the previous year.
However, it booked a £9.7m loss on foreign currency because of a reassessment of group loans and investments.
There was also a £3.9m depreciation charge and a one-off £2.2m cost for the ending of a longstanding franchising agreement with Starwood Hotels.
This led to a pre-tax loss of £14.7m for the 2021 calendar year, compared with a £5.3m loss in the previous 12 months.
Trump’s other Scottish golf course at Balmedie in Aberdeenshire, reported a reduced loss of £687,000 (2020: £1.3m loss) on a doubling of revenue to £2.1m.
Eric Trump said in the accounts that there had been a significant impact from Covid-19 and the UK government’s lockdown response.
“However, when the resort was able to reopen there was a significant increase in bookings from both domestic and international guests,” he said.
He added that Brexit had made staffing more difficult, disrupted supply chains and led to increased prices in a number of areas.
“Staff availability has been a challenge from a combination of wage inflation with retail and logistic sectors increasing wages to attract staff due to increased business levels.
“Indirectly the staffing pool has been reduced with lack of access to European staff for businesses in general resulting in greater demand for the individuals previously available to the resort,” he said.