The Press and Journal (Aberdeen and Aberdeenshire)
Hotel group upbeat amid £2.2m losses
Hospitality group Crerar Hotels has insisted the business is on an “upward trend” despite a widening of losses.
The company reported pre-tax losses of £2.2 million for the year to March 25 2023.
This was after losses of around £495,000 the year before.
But Crerar, which owns seven hotels in the north and north-east, highlighted an increase in gross profits of more than 30%, to £16.4m.
And it said turnover shot up by 31% during the year, to £19m from £14.5m previously, as summer sales exceeded pre-Covid levels.
The group said its bigger pre-tax losses were driven by the one-off costs of a company-wide restructure as well as expenses associated with it being taken over earlier this year.
It also said it had invested a further £2.4m in upgrading hotels and spas across the portfolio.
The company is now owned by funds advised by
London-based Blantyre Capital, together with operating partner Fairtree Hotel Investments.
Crerar’s hotels include Oban Bay Hotel, The Glencoe Inn, Golf View Hotel & Spa, in Nairn, Loch Fyne Hotel & Spa, in Inveraray, Thainstone House, near Inverurie, Balmoral Arms, in Ballater, and Isle of Mull Hotel & Spa.
Chief executive Chris Wayne-Wills is confident that, as a result of the new ownership, the company will continue on an upward trajectory. “It is incredibly encouraging to be able to reflect on a positive year for Crerar Hotels”, he said.
“We have demonstrated our ongoing commitment to building and strengthening our proposition, whilst ensuring our people are well looked after and valued.
“Strong summer trading was experienced, with particularly notable results following prior year investment projects such as the Isle of Mull and the
Glencoe Inn, and we saw the return of our international visitors.
“Whilst autumn and winter trading saw a gradual move towards prior year booking patterns, strategic decisions saw a larger volume of group business at Oban Bay which was particularly beneficial to overall group performance.”
Mr Wayne-Wills continued: “A main focus for us was to increase accommodation sales, following significant investment.
“This key measurement has been successfully achieved during the trading period, with a 16% increase in bedroom occupancy over the prior year, along with improvements in secondary spends of food and drink.”
Labour shortages and cost increases had a “notable impact” during the year, Crerar’s CEO said.
But he added: “We remain in a better place to recruit and retain our highquality staff and absorb supply price pressures than many of our competitors.”