Losses narrow at Highland Coast Hotels amid 34% revenue boost

Highland Coast Hotels has narrowed its pre-tax losses for the year ended 31 December 2024, with figures falling from £960,000 in 2023 to £614,000 in 2024.

The collection of North Coast 500 (NC500) hotels in the Scottish Highlands also posted a company EBITDA (earnings before interest, taxes, depreciation and amortisation) profit before one offs and exceptional charges of £274,000, up from a loss of £183,000 in 2023.

Its Brora, Dornoch, Kylesku (including Newton Lodge), Plockton and Tongue hotels delivered more than £7.2m in revenue and site EBITDA just shy of £1.1m in 2024, representing a revenue increase of 8% and a site EBITDA increase of 38% on the prior year.

Group revenue across the period also rose by 34% from £6.7m in 2023 to £9m.

Highland Coast Hotels’ improved performance in 2024 persisted through an initial “drag” from its January acquisitions, which included the Haven in Plockton and the group’s first property in Inverness, Lochardil House.

The former B&Bs will undergo further refurbishments throughout the year to ensure greater coverage of the NC500 and Plockton village, which required additional room capacity to support demand.

Industry-wide challenges remain around the heightened cost of living, the real living wage and NI contributions increases, as well as increases in rateable values.

Staff costs for the period had already increased from £3.2m in 2023 to nearly £4m.

The directors also raised concerns around additional competition in the local area, as well as a tourism levy that would “drive domestic and international demand to alternative destinations”.

However, the group said it still made “solid progress” in creating a “consistent high-quality proposition round the NC500”, as well as “tailored restaurant propositions celebrating the best of local produce”.

Highland Coast Hotels said it would continue to strengthen its luxury proposition to “protect the business from adverse economic conditions”.

The Scottish hotel group was founded in April 2021 and currently has eight properties in the north Highlands.