Crerar Hotels reports strong trading as reinvestment plan pays off
Crerar Hotel Group has posted a strong year of trading with turnover and gross profit both up year-on-year.
The Scottish hotel group reported a 31% increase in turnover to £19 million, for the year ending March 2023, as summer sales at the hotel group exceeded pre-Covid levels.
Meanwhile, gross profit increased 30% from £12.6m to £16.4m, with a further £2.4m invested in upgrading its properties over the year, including the extensive redevelopment of the spas at Loch Fyne hotel in Inverary and Golf View hotel in Nairn.
Crerar Hotels, owns eight four- and five-star hotels in Scotland, including the Dunkeld House Hotel which joined the group this month. The company also invested in the hotel formerly known as the Deeside Inn in Ballater to create a new AA five-star rated inn called Balmoral Arms.
Additionally, it reported an increase in staff numbers of 16% from 267 to 312, with an increase in salaries and benefits resulting in a £2m increase in spend.
The group was bought back in March 2023 by Blantyre Capital Limited and Fairtree Hotel Investments for an undisclosed sum. The costs associated with the sale, as well as a company restructure resulted in a pre-tax loss of £2.2m.
Chris Wayne-Wills, CEO of Crerar Hotels, said he was confident the company would continue its upward trajectory.
"A main focus for us was to increase accommodation sales, following significant investment in our hotels which has significantly increased standards and hotel gradings," he said. "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.
"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. However, these properties have achieved numerous industry awards and accolades and have performed extremely well post-refurbishment."
He added: "We have continued to focus on our investment in our people and our hotels. Our future potential continues to thrive, and we remain steadfast in our commitment to our guests, our properties and our team. We are assured about the future and under the new ownership, we will continue to confidently invest and play our part in ensuring Scotland is a world-class destination with warm hospitality at its heart."
