Crerar Hotels, recently voted the UK’s Small Hotel Group of the Year by the AA, has reported a strong trading year, with both turnover and gross profit continuing on an upward trajectory, while the group has made ‘significant investment’ in its properties across Scotland.
Although the company reported a pre-tax loss of £2.2 million, this loss incorporated the non-recurring costs of a company restructure and costs associated with the company’s sale to new owners at the March 2023 end of the reported financial period.
During this period, the group’s portfolio included seven hotels and inns, which cumulatively notched up a 31% increase in turnover, up from £14.5 million to £19 million, across the year, with summer sales exceeding pre-Covid levels.
Gross profit also increased by more than 30%, up from £12.6 million to £16.4 million, with a further £2.4 million invested in the upgrading of hotels and spas across the portfolio.
During the year, the business completed the redevelopment of the spas at Loch Fyne Hotel, Inverary & Golf View Hotel, Nairn, giving Crerar Hotels three destination spas including the previous investment at the Isle of Mull Hotel & Spa.
Crerar also invested in the hotel formerly known as the Deeside Inn, Ballater, to create a new AA five-star rated Inn called Balmoral Arms.
Across the year, the group boosted staff numbers by more than 16%, increasing the headcount from 267 to 312, while increasing salaries and benefits, resulting in just over a £2 million increase in total spend.
The group’s new owners – investment firm Blantyre Capital and management partner Fairtree Hotel Investments – have said that the Crerar properties will now form a key part of their plans to build a ‘significant’ luxury UK hotel portfolio.
CEO of Crerar Hotels, Chris Wayne-Wills, said: “It is incredibly encouraging to be able to reflect on a positive year for Crerar Hotels. We have demonstrated our ongoing commitment to building and strengthening our proposition, whilst ensuring our people are well looked after and valued. We are really starting to see the fruits of our investments.
“Strong summer trading was experienced with particularly notable results following prior year investment projects such as the Isle of Mull and the Glencoe Inn and we saw the return of our international visitors.
“Whilst autumn and winter trading saw a gradual move towards prior year booking patterns, strategic decisions saw a larger volume of group business at Oban Bay which was particularly beneficial to overall group performance,” said Wayne-Wills.
“A main focus for us was to increase accommodation sales, following significant investment in our hotels which has significantly increased standards and hotel gradings. 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.”
He continued: “Labour shortages and cost increases had a notable impact, albeit we remain in a better place to recruit and retain our high-quality staff and absorb supply price pressures than many of our competitors.
“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.”
Wayne-Wills added that the current financial year would continue to bring its own new set of challenges but expressed his confidence that Crerar Hotels is in a strong position to navigate these.
“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.”
