Crerar Hotels returns to profit despite ferry disruption

Scottish group Crerar Hotels saw a return to profit last year despite disruption to island ferry services.

The company, which runs seven hotels and inns including the Isle of Mull hotel in Craignure, was sold to Blantyre Capital Limited and Fairtree Hotel Investments in 2023 for an undisclosed sum.

Investments in the hotels by the new owners helped group turnover rise almost 9% to £20.2m between 26 March 2023 and 31 March 2024, accounts show.

During the year Crerar was back in the black with a pre-tax profit of £56,973, up from a £2.1m loss the prior year.

This was despite ongoing cancellations and delays to island ferry services, such as those used by guests to reach the Isle of Mull hotel.

The hotels also faced restrictions on capacity due to limited staff numbers, according to documents on Companies House.

“Strong summer trading was experienced with particularly notable results coming from Balmoral Arms, Loch Fyne and Golf View,” accounts said.

“Widely reported disruption in ferry services had a significant impact on the performance of the Isle of Mull Hotel & Spa. Labour shortages and price pressures continue to impact the business, but we prioritise investing in our people and processes to ensure we are in a stable position.”

Crerar saw a 10% increase in room revenue compared to the prior year, along with a rise in spending on food and alcohol.

The group increased its number of hotel staff from 303 to 313 during the year but reduced the number of administration and support employees from 19 to 14.

Its total spending on wages and salaries dropped from £8.1m to £7.4m.