Crerar Hotels Group returned to profit as it continues to invest in its properties across Scotland and defy growing pressures in the sector that has claimed another popular venue.

The group posted a  £56,973 pre-tax profit in the 12 months to March 2024, compared with a loss of almost £2.16 million in the previous year. Tax liabilities left the group with a £910,773 loss, though this was down from £1.63m.

Turnover rose by 9% to £20.2 million from £18.56m as it welcomed a 10% increase in room revenue. 

During the trading year the company took on the management of three new hotels, including the five-star Fonab Castle in Pitlochry, Perthshire’s Dunkeld House Hotel and the Daffodil Hotel & Spa in Grasmere in the Lake District.

The company said that disruption to ferry services had a “significant impact” on the performance of the Mull Hotel & Spa.

Staff numbers across the group rose, as did basic salaries and benefits. However, it said “labour shortages and supply price pressures continue to impact the business, but we prioritise investing in our people and processes to ensure we are in a stable position.”

Chris Wayne-Wills, CEO of Crerar Hotels, said: “This a strong year for the business reaching higher turnover levels.”

Rural restaurant Gather to close

A bistro overlooking the Solway Firth in Dumfries and Galloway, once voted one of the UK’s most romantic restaurants, is the latest to fall victim to rising costs. The Gather will become an exclusive-use venue for weddings and events.

Owner Duncan McConchie said the Seaview Snugs will remain open as usual, as will sister hotel, The Murray Arms in Gatehouse of Fleet.

Mr McConchie said in a LinkedIn post that “hospitality, especially in rural and seasonal places, is in crisis.

“Just look at the hotels & restaurants on the market in these rural areas with no buyers, no letting market and it is more than likely that closed or delapidated buildings on high streets were once thriving social restaurants and bars. Places which once employed local people, supported local food & drink supply chains and hired local tradesmen year in year out to keep their businesses booming.”

He added: “We’re promised that those in power understand. That great conversations are being had. That those who hold the strings which could mean make or break for hospitality are on our side. That Non Domestic Rates will be reviewed for hospitality. Well for too many it’s too late.

“In Ireland, the hospitality industry marched & protested when VAT was increased from 9% to 13%. In the UK we pay 20%. We’ve never marched or protested. Farmers did and whilst nothing has changed yet, you’d be hard pushed to find someone in the UK who didn’t know their plight.

“I take my hat off to those who can make it work in this industry in rural areas.”