More guests staying at luxury Old Course Hotel

Kohler Scotland revenues down due to fewer property sales

Higher occupancy rates have helped revenues at the Old Course Hotel in St Andrews to rise.

The latest accounts of the hotel’s owner Kohler Scotland Ltd report an increase in the number of guests at the five-star hotel.

Despite the positive update on the hotel, the company made a loss for the year ending December 31 2016 due to lower sales of its luxury apartments at Hamilton Grand beside the Old Course.

The company’s turnover reduced from £21.9 million in 2015 to £18.2m last year.

The loss before taxation was £1.3m compared with a £948,000 pre-tax profit the previous year.

Director Thomas Adler explained: “The underlying trading revenue of the Hotel, Golf Resort and Spa has increased due to the increase in the hotel’s occupancy rates and number of hotel guests, with reduced luxury apartment sales in the year accounting for the overall decrease in revenue of 17%.

“Competitive pressure in the UK and international resort markets are continuing risks for the company, particularly against the backdrop of the current economic climate.

“The company manages these risks by investing in superior quality products and services in an effort to distinguish itself from competitors.

“Significant product investment by our competitors might adversely affect the company.

“However, the directors are investing in room refurbishment and spa expansion to ensure that we maintain our competitive advantage.”

Kohler Scotland Ltd is a wholly owned subsidiary of Kohler Co, which has provided the UK company with a £57.8m loan.

Finance costs for the year increased from £78,000 to £475,000.

Mr Adler acknowledged that Brexit may impact on property sales but also had the potential to increase the number of hotel guests from overseas.

He added: “The uncertainty surrounding the UK’s exit from the EU will present a risk in the selling of apartments by the company in 2017 and beyond.

“The weakening pound presents a risk of increased costs to the company but could also stimulate overseas tourist numbers visiting the UK.”

The company started a major refurbishment of the Old Course Hotel at the end of 2016, which provide a new roof, windows and refreshed guest bedrooms.

The refurbishment temporarily closed the 144-bedroom hotel at the start of this year while the works were completed.

Picture: Peter Anderson. The Old Course Hotel in St Andrews has recently undergone a major refurbishment.