A new events suite and rising room rates have helped boost revenue and profitability at the Kingsmills Hotel in Inverness.
Turnover at the four star property grew by more than £1 million to £7.5 million in 2015, compared with the previous year, according to annual accounts released by Companies House yesterday.
The 152-room hotel recorded 86% occupancy during the year to the end of December 2015, with an average daily room rate of over £90.
Pre-tax profits at the Kingsmills for last year were £241,113. However in the accounts, the company highlights that without “exceptional factors”, including a directors loan write off and management fees, the pre-tax figure would have been £1.3 million.
The accounts show a gross trading profit for the hotel in 2015 of £4.6 million, representing an increase of 18% on 2014 and 70% on 2013.
In his foreword to the accounts, Tony Story, managing director of Kingsmills owners, Patio Hotel Group, said the hotel had continued to trade “very strongly” in 2015.
He added: “The growth of the hotel revenue in 2015 is largely due to the maturing event space that opened in 2014 with substantial increase in food and beverage revenue and the existence of the event space driving greater room revenue both in volume and rate.”
Since Patio Hotel Group bought the hotel in 2007 it has added 71 rooms. A new development of 13 luxury garden rooms built in its grounds was opened in May 2015.
The company said the Kingsmills was continuing to trade strongly this year, with revenue up £600,000 by August, compared to the same period last year and on course for as full year increase of £800,000.
Yesterday Mr Story said the company was “delighted” by the hotel’s results.
He said: “Revenue and profitability have grown considerably over the previous year and that has followed on into 2016.
“The city itself is doing better, so we are not benefiting at the expense of others in the industry.
“Room rates are rising across Inverness, which was much-needed here. We are still at 95% occupancy now.”
Patio Hotel Group has invested around £21 million in the Kingsmills over the past nine years.
Last month the company unveiled multi-million pound plans to transform the Maple Court Hotel, on the banks of the River Ness, into new luxury accommodation.
They hope to invest £6.4 million turning the eight-bedroom guesthouse into a four star hotel with 52 bedrooms and a high quality restaurant.
The plans for the historic site have been lodged with Highland Council and if planning permission is granted work on the development could start next spring.
