Inverness estate hit with heating costs soaring from £21,000 to £62,000 in a year

Historic Highland manor house Achnagairn Estate has seen its heating bills soar from £21,000 to £62,000 in a year.

The 65-bedroom venue, in Kirkhill near Inverness, has had to adapt how it is run in a bid to “drive” its way through the challenges facing the hospitality industry.

Chairwoman Marina Huggett has faced some tough decisions during the past year and led a significant change in day-to-day operations in a bid to continue the successful running of the popular estate.

The restaurant is now permanently closed with catering being carried out by local businesses instead.

And staff number are now 32 compared to 62 pre-Covid.

Problems facing sector

Rising energy bills, staffing problems, increasing business rates and the controversial deposit return scheme are just some of the problems facing the hospitality sector.

Ms Huggett said: “The rising costs of doing business are challenging.

“The cost of heating our business has trebled in the last year with it going from £21,000 to £62,000.

“We are on a mission to be more green and sustainable but there’s cost implications with that.

“We have had to find that money but we’ve managed to take in some extra corporate business which has helped us tremendously.

“But we’ve got lots of challenges facing us. We’ve got the increase of business rates, the short-term licensing regulations as we’ve got eight self-catering properties on the estate and the deposit return scheme.”

Valuing staff members

A restructuring meant staff numbers at the estate, which operates at an exclusive-use venue, reduced.

For Ms Huggett it’s all about retaining the staff she currently has.

She said: “Restructuring the business was the right thing to do given the staffing crisis in the hospitality industry.

“Current business on the books is great for this year. We’ve adapted and learned new ways to cope with less people and also to appreciate and show value to these we employ more.

“The staffing crisis in hospitality continues and in many ways we are very grateful we don’t need to find as many people as before but we have solved that through working with four local companies who do our banqueting.

“We’ve continued to build and develop the skills of or core people because we are dependent on them to deliver a service.

“Tried to give them some extra benefits to make sure we keep them motivated and engaged in the business.”

In January every member of staff was given an additional fully-paid week’s holiday and a bonus. They were also treated to a staff party with an overnight stay in the castle.

Ms Huggett said: “We are being a little more innovative with our thinking.

“Hospitality is one on those industries you either love or hate working in. But once it gets under your skin you’ll do whatever it takes to deliver that customer experience.

“We are very lucky to have staff like that.”

‘Can’t afford to relax’

Looking towards the future Ms Huggett believes the future is positive for the estate.

She said: “The bookings are coming in and we are still getting lots of enquiries.

“We are confident we can drive our way through this. You’ve got to be on your toes and alert and you can’t take your eye off the ball.

“There’s curveballs coming at you round every corner in the hospitality industry right now. We can’t afford to relax at all.”