The Courier & Advertiser (Fife Edition)
Gleneagles back in profit
PERTHSHIRE’S FIVE-STAR Gleneagles Hotel has returned to profit after an increase in corporate bookings.
The luxury resort owned by drinks firm Diageo saw turnover increase from £33.7m to £35.7m in its financial statement for the year ending June 30, 2011.
Profits for the year before tax were £595,000 compared with a loss of £745,000 the previous year.
This increase comes despite the Dormy Clubhouse bar and grill being closed for six months as part of a £2.9m refurbishment.
Room volume increased 8% with growth occurring in the corporate and leisure markets.
The hotel has been increasing staff numbers ahead of the Ryder Cup being staged at the venue in 2014.
Employee numbers rose by more than 100 during the year, from 757 to 858, having stood at 682 in 2009.
The majority of the new recruits were part-time workers meaning the amount spent on wages and salaries showed only a mild increase from £12m to £12.4m.
Work was also carried out on the PGA Centenary Course, with redesigns of the 9th and 18th holes overseen by Jack Nicklaus. Technology to improve drainage from the greens was also added.
The highest paid director received £282,000, compared with £303,000 in 2010. Total directors’ remuneration fell from £751,000 to £479,000 partly due to chairman Peter Lederer now receiving his compensation from another Diageo group company.
The profits for the year have been transferred to the firm’s cash reserves, with no dividends being paid to shareholders.
The hotel was built in 1924 by the Caledonian Railway Company along with its own railway station.
It was nationalised along with the railway system in 1948 before being put back into private hands in 1981.
Until 1982 the hotel only opened during the summer months, but between 1982 and 1986 more than £11m was spent on a complete renovation.
It achieved a five-star rating from the AA in 1986 and has held it ever since. Investment since 1982 has topped £46m. After being bought by drinks company Bells it has been owned by Diageo since the merger of Guinness and Grand Metropolitan in 1997.
The resort is home to three champion golf courses, with the PGA Centenary Course that was created by Jack Nicklaus in 1993 complementing the King’s and Queen’s courses.
The hotel offers spa facilities, a hair salon and nail bar. There is also the opportunity for horseriding, shooting, fishing and falconry on site.
It is also home to the only two Michelin star restaurant in Scotland, run by chef Andrew Fairlie.