Luxury five-star resort in Perthshire, Gleneagles is starting to feel the impact of its multi-million pound refurbishment programme with a £1m rise in operating profit published in its latest company accounts.
The 232-bedroom hotel saw turnover for the 12 months to 31 December 2018 rise to £55.3m from £51.2m on the previous year, with operating profit up to £3.5m from £2.5m in 2017.
Profit before taxation fell from £505,000 to £55,000.
Over the last year the ongoing refurbishment at the property has seen the opening of a new meeting space, Ochil House and the continued development of the F&B offering at the Dormy Clubhouse, as well as the re-development of the golf shop and further renovation of the room stock at Gleneagles.
In the Companies House report, David Kemp, finance director said that the business continues to see ‘positive trading conditions’, with the ‘development and performance of the business during the year in line with expectations’.
He said: “Alongside other current developments including renovation of our flagship Strathearn restaurant in 2019, there renovations are set to further enhance Gleneagles position as a ‘glorious playground’ in the heart of the Scottish countryside.”
Gleneagles Hotel and its three golf courses were sold by Diageo to private equity firm and owner of The Hoxton group of boutiques, Ennismore in 2015 for a price rumoured to be around £150m.
The accounts also highlighted potential risks to the hotel’s profitable future, with the ‘potential occurrence of shocks to the European and American economies’ that could result in a drop in visits from corporate and leisure clients.