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.
Sales soar above pre-Covid levels
And it said turrnover skyrocketed 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.
Which hotels does Crerar own and what are their future prospects?
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.
‘Strong summer trading’ in 2022-23
“We have demonstrated our ongoing commitment to building and strengthening our proposition, whilst ensuring our people are well looked after and valued. We are really starting to see the fruits of our investments.
“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.”
Trading impacted by labour shortages and cost inflation
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 high-quality staff and absorb supply price pressures than many of our competitors.
“The ongoing issues associated with labour and supply lines meant all investment projects overran into the summer and autumn of 2022, which impacted on the ability of these properties to fully trade.”
Edinburgh-based Crerar said it boosted staff numbers by more than 16% to 312, and increased salaries and benefits during its 2022-23 trading year.
Its four and five-star hotels now form a key part of the new owners’ plans to build a “significant” luxury UK hotel portfolio.
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