Highland Coast Hotels says it is sticking with its ambitious plan to renovate and expand its restaurant and bar offerings across its portfolio – despite surging cost pressures being felt across the board.
Some north hospitality businesses are mulling whether or not to pull down the shutters for this winter as energy bills soar northwards, but Highland Coast Hotels insists it is determined to stay the course and provide four-season holidays.
The group’s upgrades include the opening of Crenshaw’s Brasserie at Royal Golf Hotel in Dornoch as well as the launch of the Curing Yard Restaurant, the Megan Boyd Bar and the Braid Lounge at the newly refurbished Royal Marine Hotel in Brora.
Specifically, the Curing Yard Restaurant is named after the old fish-curing yard in Lower Brora – which can still be seen from the hotel – and trading on the area’s salmon and herring fishing history. The new menu features dishes using locally sourced oysters, sea bass and Highland lamb, as well as a smoky lobster.
Royal Marine Hotel’s Braid Lounge is named after golfer James Braid, who was responsible for more than 400 courses in the UK either as the original designer, or for extensions or revisions to existing ones. In 1924, Braid visited Brora and gave it its links course.
Royal Marine Hotel in Brora in £1.6m upgrade
Earlier this year, Highland Coast Hotels received a £4.45 million publicly-backed investment as a loan from state-funded Scottish National Investment Bank (SNIB) to boost jobs and training for the local area.
Some £1.6m of that cash has been used to renovate the Royal Marine Hotel Brora, while the other properties in the portfolio are the Kylesku Hotel and Newton Lodge in Unapool.
Highland Coast Hotels chairman David Whiteford admitted surging costs might limit some of the firm’s ambitions temporarily, but that it was still aiming to make a positive impact on the region’s economy.
“We’re sticking with our strategic plan to buy and invest in properties. The hotels we’ve purchased are in need of upgrade to reach the brand standards we aspire too, but given the current economic climate we may well have to reign back a bit on our ambitions,” he said.
We need to be as vigorous as we can”
Highland Coast Hotels chairman David Whiteford
“While there are opportunities to upgrade there, are also many opportunities to add activities and experiences, encourage people to stay longer.
“People staying longer results in more spend not only with us but other local businesses as well, whether they be our suppliers or local attractions, cafés, shops or activity providers and in so doing stimulate the ‘circular economy.'”
Market gets tough
He said he remained confident the region will continue to remain appealing to visitors despite challenging trading conditions.
“The market is tougher this year but we’re confident it will remain positive for the North Highlands,” he said.
“Everybody in our supply chains is feeling the effects of extra costs and while we will all do our best to absorb them, undoubtedly some will have to be passed on to the consumer.
“Some costs such as energy are frighteningly discouraging but we have to try and make our premises as efficient as we can which is not easy with vernacular [using local materials] ones.
“Like many other businesses we’re concerned but we remain upbeat that people, whether they be UK-based or international, will still choose to come to the North Highlands for their holidays as it represents great value for money.”
Those energy cost concerns were echoed earlier this week by Moray Chamber of Commerce which said it had had “terrifying conversations” with hospitality businesses “on their knees” and noted “walls are closing in for all businesses” if support is not forthcoming.
Open all seasons
Chamber chief executive Sarah Medcraf pointed to companies witnessing an increase of almost 400% in energy bills, with some hoteliers even now making the decision whether or not they close for the winter as it may be cheaper to do so, although Highland Coast Hotels is avoiding that route.
“We are very keen to keep our businesses open as much as possible all year round,” said Mr Whiteford adding: “As tourism operators we would do well to stop talking about ‘the season’ as the Highlands are an amazing place to come to all year round but there’s no way people will come if businesses have their ‘closed’ signs up.
“We think people want to come to the North Highlands in the winter months, to have a winter experience – we just need to adapt the ‘offer’ to the time of year.”
‘Careers not jobs’
The Highland Coast Hotels chairman noted more training opportunities were needed and that he wanted to “create careers for people not jobs” and promote the opportunity that hospitality represents including administration, marketing and revenue management.
Mr Whiteford was keen to stress Highland Coast Hotels is already a Living Wage employer to show hospitality “is an industry where you can be properly paid for your work.”
Mr Whiteford also highlighted how his hotel group aimed to fit in with the community, pointing to the Community Card scheme available for locals within a 15-mile radius of the properties and providing a 30% discount year-round in all restaurants and bars, as well as community liaison groups in each hotel.
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