Gleneagles back in the black with £7m profit

Gleneagles is back in the black and has reported a pre-tax profit of over £7m, compared to a loss of nearly £9m last year.

The resort in Auchterarder, Perthshire, said the business had “still felt the impact of the Covid-19 pandemic” during the year to 31 March 2022, as it did not open until 26 April 2021 and operated under numerous restrictions for the first month.

However, the five-AA-star, 232-bedroom hotel subsequently benefitted from the staycation boom to see a turnover of almost £69m.

The business said operating margins and profitability were “under pressure” from both food and utilities inflation, and staff shortages remained a challenge, although it had secured a sponsorship licence to aid post-Brexit recruitment.

In its current financial year, the directors said the performance of the hotel had “exceeded expectations”, with average daily rate (ADR) and occupancy ahead of forecasts and revenue per available room (revpar) at ”a historically high level” as the property benefitted from pent-up demand.

The multimillion-pound refurbishment of the hotel also continued throughout the year, focusing on the spa and Birnam restaurant.

The hotel repaid a £5m government coronavirus loan early in its previous financial year, despite its losses.