The weak pound has led to a surge of bookings at Macdonald Hotels, one of the Scottish hospitality firm’s bosses said yesterday.
Deputy chairman and group managing director Gordon Fraser was unable to give any figures but described the increased demand for rooms for the 2017/18 trading year as “an avalanche”.
Sterling’s current weakness is encouraging interest from markets including the US, Japan, China and mainland Europe, he said.
He was speaking after Bathgate-based Macdonald reported a healthy rise in profits and turnover for the year to March 31, 2016, while the company also revealed it had cut its bank debt by more than £500million to £196million since 2003.
Pre-tax profits rocketed to £62.4million – from £2.7million a year earlier – as the group made substantial gains from the sale of land and two hotels, which more than offset trade losses caused by a fire at the Randolph Hotel in Oxford.
Turnover increased by 5% to £163.4million, helped by an improving UK economy and strong trading within the hotel portfolio.
Macdonald spent nearly £13millon on refurbishments which, together with economic factors, are expected to deliver further growth in 2016/17.
The group’s Aviemore assets alone are expected to deliver a 40% increase in sales.
Mr Fraser said: “One of the major bonuses in the current year has been the fantastic performance of Macdonald Aviemore Highland Resort (MAHR), where we are now winning major conferences against international competitors such as Frankfurt and Barcelona.
“We’ve invested £8million in Aviemore in recent years and our upgraded facilities, together with the stunning setting of the Spey Valley, are proving a powerful draw.”
MAHR is proving particularly popular with customers from France, Italy and Spain, Mr Fraser said, adding: “We expect even more interest in the year ahead.”
While the impact of this year’s Brexit vote on sterling has delivered an immediate boost to the company, uncertainty over the future status of EU nationals is a large cloud on the horizon.
About 30% of the group’s total workforce, which numbers around 4,000 staff at peak times, are from the rest of the EU.
Mr Fraser said their future after Brexit was “not something which will be in our control”, and the company would continue to invest in these and other workers.
Macdonald operates 55 hotels throughout the UK, Ireland, Portugal and Spain.
Besides MAHR, the firm’s north and north-east operations include the Norwood Hall and Pittodrie House hotels in Aberdeen and Drumossie Hotel in Inverness.
The five-star Randolph Hotel underwent a £6.5million renovation following last year’s fire, which was sparked by a flambéed beef stroganoff.
In October, the same hotel suffered an embarrassing review. Leading food critic Giles Coren was charged £21.50 for a full English breakfast he said was burnt and inedible.