The Courier & Advertiser (Fife Edition)
Challenging times as hotel marks 150 years
Crieff Hydro trading well but tourism ‘storm clouds’ on the horizon
The owner of Crieff Hydro has revealed a surge in profits as the Perthshire playground celebrates its 150th anniversary, but warned of “storm clouds” gathering over the tourism sector.
Entrepreneur Stephen Leckie said the trade was facing multiple challenges led by the rising costs of doing business, Brexit uncertainty and a squeeze on the disposable income of many households.
He said the wider economic circumstances meant hotel groups were having to work harder than ever to attract and retain customers.
However, the Crieff Hydro group – which also includes Murraypark Hotel at Crieff, Peebles Hydro and The Park at Peebles and The Ballachulish and Isles of Glencoe hotels on the West Coast as well as Crieff Hydro’s management company – put in a strong performance.
Overall revenue for the year to February 28 jumped by more than 10% to £29.8 million, with earnings before interest, taxation, depreciation and amortisation coming in 22% higher at £2.9m. Pre-tax profits were up by almost two-thirds at just over £700,000.
Mr Leckie said the quality of the group’s offer was key to its success, with the accounts showing the business reinvested more than £2m in upgrading its facilities during the year.
“In our 150th year we’re delighted to have put in such a solid performance with all businesses showing growth,” Mr Leckie said.
“This has confounded some of our predictions last year.
“Make no mistake it has been challenging, seeing through restructuring we started last year and fighting hard for every pound of revenue and profit.”
Peebles Hydro moved into the black for the first time since being acquired by the group in 2014, while the Glencoe properties also remained profitable.
Mr Leckie said an ongoing project with the owners of the Kings House Hotel in Glencoe was also progressing, with the property set to open next year.
He said: “This shows there’s lots of opportunities out there and our performance says we are seizing them.”
However, the hotelier said the tourism market was challenging and, while Crieff was on “strong foundations”, the market challenges were likely to grow.
“It’s a positive place to start, but it’s been tough and its getting tougher as fundamental changes to cost structures pile up,” Mr Leckie continued.
“This on top of massive uncertainty over all sorts of Brexit consequences which it’s now clear will continue long after March 2019 – whatever the deal.”
Crieff Hydro will mark its 150th birthday on Tuesday and remains one of Perthshire’s largest tourism draws.
The Crieff hotel employs around 650 staff, while the group as a whole supports more than 1,000 full and part-time posts.