Covid loss is largest in history of Gleneagles Hotel

LUXURY Gleneagles Hotel has suffered a second year of multi-millionpound losses.

Newly filed accounts for the five-star hotel, golf and spa resort show revenue fell by more than 50% last year as it was forced to close. Due to Covid restrictions, the estate traded for just four months of the year to March 31 2021.

Revenue fell to £19.7 million, the lowest amount since 1993, and pre-tax losses reached £9m, a record deficit. This follows a £5.2m loss in 2020 when turnover was £66.4m for a 15-month period.

In his strategic report, managing director Conor O’Leary said Covid had an “immense impact” on the business. But he said demand from customers when open continued to perform well. He said the use of the furlough scheme last year “avoided the need for large-scale redundancies”.

It repaid a £5m government loan last summer after strong trading.

Mr O’Leary said: “The business performed well during the period of trading, with turnover in line with expectations.

“Being able to retain the majority of our staff has enabled a strong trading period since reopening again on April 26 2021.”

Upon reopening, the hotel sought to fill more than 240 positions, including a head of coffee.

The accounts show average staffing numbers for the financial year were 894, compared to 967 in 2020.

The hotel, near Auchterarder, forecasts strong occupancy for 2022 and 2023.

The directors consider the main risk facing the business to be “shocks” to European and American economies that could lead to reduced occupancy from corporate and leisure clients.

Despite the challenges posed by the pandemic, investment on the 850acre estate has continued.

Mr O’Leary said: “Our multi-millionpound refurbishment programme continued with the completion of our bedroom upgrade programme.”