Losses more than double at Trump Turnberry
● US president’s firm sees losses hit £10.7m despite rise in turnover
Losses at Donald Trump’s flagship Scottish golf resort have more than doubled to £10 million, marking the fifth consecutive year under his ownership it has failed to turn a profit, newly published accounts show.
The US president’s Turnberry resort ran up losses of more than £10.7m last year, meaning that since he took over the historic property in 2014, it has lost nearly £43m.
It comes as Mr Trump’s most prestigious overseas resort is at the centre of a Congressional investigation into US Defence Department spending and patronage.
The House Oversight and Reform Committee is also looking into US military spending at the Scottish Government-owned Glasgow Prestwick Airport, and its ties with Mr Trump’s South Ayrshire hotel and golf course.
As revealed by The Scotsman last week, the Trump Organisation’s plans for a major expansion of Turnberry by rezoning swaths of prime agricultural land to make way for housing and luxury villas – a venture seen as crucial to returning the historic venue to profit – have been rejected.
The new filings with Companies House reveal that over the course of 2018, Turnberry’s parent firm, Golf Recreation Scotland Limited, lost £10.77m on a turnover of £18.41m.
In the previous 12 months, Turnberry lost £3.38m, with turnover standing at £15.2m.
That represented a significant stemming of the record £17.6m losses posted in 2016, during which time the course was partially closed to allow for refurbishment works.
The accounts also show that the resort owes The Donald J Trump Revocable Trust, its ultimate parent company, some £115m. That is up from £107m in 2017.
The cost of sales rose from £9.7m to £11.5m over the same period. Administrative expenses were also up from £6.5m to £7.1m.
In his director’s report accompanying the accounts, the firm’s sole director, the president’s second son, Eric, executive vice president at the Trump Organisation, wrote: “Trump Turnberry achieved tremendous success in 2018 as the property recorded its highest annual revenue in the resort’s storied 113 year history.
“Now in its fifth full operating year under Trump Hotels ownership. Trump Turnberry has established itself as Scotland’s premier destination for luxury travel, championship golf and special events.”
He added: “As part of an ongoing multimillion pound renovation, ownership continues to improve and modernise the property’s facilities including newly upgraded villas, enhanced spa and wellness offerings and an outdoor guest activity centre which will be fully completed in 2020.”
The accounts also confirm that the firm’s subsidiary, DT Connect Europe Limited, has sold its “main asset” to a “company under common control for £600,000. The firm was set up to oversee a luxury helicopter charter business and the asset in question is one of three Sikorsky S-76B helicopters owned by Mr Trump.
As revealed by The Scotsman last month, the helicopter has been shipped back to the US amid falling demand and a refusal by some customers to fly in the aircraft with its prominent TRUMP branding on display.
The accounts add “no further revenue is expected to be generated” by DT Connect Europe, and that it has been “discontinued.”