One of the north-east’s most prestigious hotels got back on track with its earnings as the area’s economy recovered during 2017.
Accounts for Meldrum House Estates, which runs Meldrum House Country Hotel and Golf Course at Oldmeldrum, show contrasting fortunes for the business between 2016 and last year.
The impact of the oil and gas downturn and disruption due to work on a £4.5million extension had a big impact on the figures for 2016, causing a widening of pre-tax losses to £7.6million following Meldrum House’s dip into the red the year before.
But turnover was flat at £3.4million in the latest period, with a hefty increase in administrative costs and bigger rates bill sending the business deeper into the red.
But the accounts also reveal the hotel turned the corner last year, with the improved financial performance continuing into 2018.
Meldrum House enjoyed a 15% increase in turnover in 2017, while a return to positive earnings before interest, taxes, depreciation and amortisation (ebitda), compared with ebitda losses of £280,000 in 2016, also bode well for the future. “We are forcasting a further increase in the year to December 31, 2018,” directors said.
A spokesman for the hotel yesterday added: “We have seen a marked improvement in 2017 running into 2018”.
The 24-acre estate was acquired by its three current directors – local businessman Robert Edwards, together with Peterhead-based brothers David and Terry Buchan – about 24 years ago.
Meldrum House’s history can be traced back to the 13th century but it was first run as a hotel in the 1950s by the late laird, Sir Robin Duff.
The recent extension, completed in June, 2016, added 24 bedrooms – nearly doubling the total – as well as a boardroom and new ballroom for up to 200 people.
Former Manchester United and Aberdeen Football Club boss Sir Alex Ferguson flew into Aberdeen in September 2016 to officially open the new facilities.
The hotel has won numerous awards, most notably AA Hotel of the Year for Scotland in November 2014 and two coveted Red Rosettes for its dining room.