The owner of two Highlands hotels said they have seen an “unbelievably busy” year after more than £6 million invested in refurbishments.
The Ballachulish Hotel and The Isles of Glencoe Hotel near Fort William were acquired by the Crieff Hydro Family of Hotels in 2016.
Since then both have undergone significant upgrades, with in excess of £6m spent.
Chief executive Stephen Leckie said more investments will continue, but the improvements have paid dividends.
New accounts for Crieff Hydro Limited reveal the two hotels had revenue of £6.1m in the year to February 29 2024, an increase from £5.5m in the 2023 financial year.
Meanwhile earnings before interest, taxes, depreciation, and amortization increased by more than 27% to £1.1m.
Investments paying off
Mr Leckie said the hotels had made a valuable contribution to the group, which also saw its turnover rise.
He said: “We knew that both hotels would need millions spent when we bought them. Millions have now been spent.
“Every room has been refurbished and we are continuing with upgrades to the public areas.
“But the improvements have made a big impact to our revenues.”
The chief executive said the growth had continued this year, describing it as an “unbelievably busy summer.”
He added: “They have traded well above our expectations.
“We do our best to offer a good food and service, and that’s part of the reason why we’re successful.”
Hotels ‘exceeding expectation’
Meanwhile Crieff Hydro Limited, which covers the group’s six hotels including its flagship Perthshire resort, has also shown growth.
The group also includes Murraypark Hotel, Peebles Hydro, The Park in Peebles as well as the 1881 gin school and distillery.
The accounts, show an increase in turnover to £38.9m, from £36.4m in 2023. Pre-tax profit fell from £419,000 in 2023 to £32,000 last year.
Mr Leckie said the underlying EBITDA increased year-on-year by more than £1m.
He said: “This is testament to the hard work and innovation of the management team.
“It’s particularly pleasing to see our past investments paying off with growth in revenue and profit at all our hotels.
“A decade on from our first involvement, both Peebles Hydro and our hotel cluster on the west coast, has contributed over £1m of EBITDA to the business.
“Thanks to this profitability we were able to continue to re-invest nearly £2m.”
The business has also entered a new long-term debt facility with Santander. Bank loans and overdrafts stood at £16.7m at the financial year end, which Mr Leckie expects to increase with a new multi-million-pound investment in Crieff.
Crieff Hydro will see a multi-million-pound investment to create a new bar, a speakeasy and refurbish dining areas.
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