The owner of the luxury Fife Arms Hotel in Braemar saw its losses more than double last year.
Newly filed accounts for hospitality group Artfarm Ltd show pre-tax losses increased from £3.3 million in 2022 to more than £6.6m last year.
The deficit comes despite an increase in turnover for the group, which also includes Ballater’s Fish Shop and Farm Shop in London’s Mayfair.
The revenue jumped 12% to £17.3m in 2023, from £15.4m in 2022.
The company is owned by Swiss art dealers Iwan and Manuela Wirth and also includes the Invercauld Mews Pub in Braemar and Roth Bar and Grill in Somerset.
Artfarm acquired Fife Arms, popular with a host of celebrities and royal clientele, in 2016.
After a multi-million-pound refurbishment it opened to the public in 2018.
Fife Arms owner’s £6.6 million loss
Artfarm chief financial officer Jonathon Cornaby told The Press and Journal that 2023 was a successful year in the hospitality group’s evolution.
He said it had achieved “remarkable growth” in sales year-on-year.
“2023 was also a year of foundational work in preparation for further growth and openings in 2024, 2025 and beyond,” he said.
“Which means that Artfarm’s profitability is necessarily limited and will be for the forseeable future.”
Filing Artfarm’s accounts with Companies House, Mr Cornaby underlined Fife Arms’ rise in bookings.
“The Fife Arms continues to enjoy success, achieving occupancy of 73% (up from 2022’s 70%) and delivering sales up 16% year on year and a positive EBITDA (earnings before interest, taxes, depreciation, and amortization) of £2m,” he stated.
“The hotel continues to deliver high guest satisfaction and significant press and PR coverage.”
This includes being on lists for both the ‘Top 50 Boutique Hotels’ and The Times’ ‘Best Places to Stay 2024’ .
Mr Cornaby said directors were satisfied with Artfarm’s loss given the company’s current “development phase”.
He added: “The directors have received assurances from the parent company that it will continue to support the company and accordingly consider the year-end financial position to be satisfactory.”
Artfarm Ltd beefed up its workforce to 389 in 2023. It employed 278 people in 2022.
Michelin Inspector’s Favourite
In 2023 it opened Fish Shop in the neighbouring village of Ballater. The 40-cover restaurant was set up in a building rescued by King Charles after being wrecked in a storm.
The royal charity Dumfries House funded the restoration after Storm Frank swept through the country in 2016.
“Fish Shop restaurant and its adjoining fishmonger celebrate the heritage and traditions of fishing in Scotland, serving ethically sourced fish, as well as creel-caught and hand-dived crustacea,” added Mr Cornaby.
“The venue has received many favourable critic and press reviews, including being listed as one of The Michelin Inspector’s Favourite New Restaurants and Conde Nast Traveller’s UK Best Restaurant Awards.”
And last week Artfarm confirmed it had also purchased the nearby Braemar Kirk to help develop Fife Arms’ ‘“hospitality offerings”.
“The Artfarm model is to find unique sites and locations with a history or story to tell,” said the CFO.
“Artfarm invites both leading Hauser & Wirth artists and local craftspeople and artisans to interpret those stories with commissions and site-specific installations.
“It believes that art has a unique power to inspire, and through this passion for art, coupled with a commitment to community, education, people and place, its ground-breaking hospitality offer can be defined.”
He also pointed to the construction of a public tennis court in Braemar.
And how the company had staged the Braemar Literary Festival attended by her Majesty Queen Camilla and the Festival of Fashion.
Conversation