Scotland's iconic Old Course hotel saw falling profits last year as the economic slowdown continued to bite, newly released records show.
Sales for the full year ended 31 December 2009, just filed at Companies House, reveal a 15.9% fall in sales with turnover down to £9.9m (2008: £11.7m) as the tough economic environment depressed occupancy rates at the golf resort hotel in St Andrews.
Although the hotel said it had reduced staff costs (down 8.6%), gross profit fell 34% to £736,995 (2008: £1.13m).
Parent company Old Course Ltd, which is owned by US manufacturing company Kohler, purchased Hamilton Hall further to its existing development at Dukes Residence in the year.
The plan is to develop both sites into luxury residences to complement the Old Course hotel but with the bottom falling out of the property market, Old Course Ltd was forced to take a £4.9m impairment charge to reflect the fall in values.
This saw Old Course Ltd register a loss before tax for 2009 of £7m, up from a loss of £2.6m in 2008.
By Chris Druce
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