The slump in the value of the pound is expected to tee up growth in the golf and weddings business of a well known luxury north-east resort, directors said.
Meldrum House Estates said the boost will help it recover from the loss in revenues that had previously been fueled by the oil and gas industry.
Directors of the historic Meldrum House Country Hotel and Golf Course admitted that 2015 was a “disappointing” year for the firm. This was due both to the “ongoing problems in the oil industry” as well as disruption caused as it completed a £4.5million extension.
Work completed on the refurbishment in June, and the Oldmeldrum-based hotel expects that the doubling the number of its rooms and a new ballroom to accommodate 200 will increase its already “significant” wedding business despite the downturn.
“The additional rooms will also allow us to target the golf market which continues to expand with a growing number of overseas visitors attracted to the many excellent courses in the north-east. The weakness of sterling post the Brexit vote should further boost golf tourism, particularly from the USA,” the group said in its accounts for the year to the end of December 2015.
Sterling plunged to a new 31-year low against the dollar yesterday, with experts warning that the pound could reach parity with the euro next year. And while the fall in the value of the pound is worrying for some, businesses targeting international markets are set to benefit.
Turnover at Meldrum House Estates fell 9% to £3.4million in the year, while the company reported a pre-tax loss of £292,812, compared to profits of £119,329 in 2014.
Andy Burgess, director, said: “2015 was a tough year generally due to the economic status of the Aberdeen oil and gas industry. However, Meldrum House has never totally relied on that revenue stream.
“Our focus has always been on whisky, golf, tourism and weddings. The main activity for 2015 was our £4.5million development plan which would create an entirely new wing at Meldrum House ready in 2016.
“This did have an effect on revenue in 2015 as we restricted functions and bedroom capacity to ensure that there was minimum disruption to guests.
“However, with the new development opening in June of this year, it has put the hotel firmly back on the map. As a result, we are marketing the hotel locally, nationally and world-wide to ensure that we make the most of what has been created.”
