Gleneagles Hotels Ltd has reported for the year ended 30 June 2014, which includes some activity in the run up to the Ryder Cup but does not cover the period of the event itself in September 2014. Despite that, and with general economic conditions continuing to be favourable, turnover increased by 12% to £43.6m, while operating profit grew by £1.0m to £1.9m. Gleneagles states:
“The improvement in turnover was driven by three main factors. Firstly, room volumes grew by 10% as a result of a higher number of stays from our leisure guests and a continued increase in corporate and celebration events. Secondly, our food and beverage revenue grew by 13%, reflecting the quality and variety of the restaurant and bar offering at Gleneagles. Thirdly, golf revenue enjoyed growth with increased numbers of rounds being played and higher retail revenue.
Continued infrastructure investment
“The operating profit growth of £1.0m to £1.9m was achieved despite continued infrastructure investment ahead of the Ryder Cup and also accelerated investment in drainage works on the King’s and Queen’s golf courses. The higher volume of golf rounds reflects the excellent condition of all three of our championship golf courses.
Club re-development
“The year also saw the completion of our £5m investment in the Club redevelopment. Residents are enjoying this new facility and we are seeing an increase in interest across individual and corporate memberships.
“In the year, Gleneagles received a dividend of £2.3m from its subsidiary, Gleneagles Resort Developments Limited, which brought profit before tax to £4.2m.
Current year upturn
“In the current year to 30 June 2015, we are continuing to see an upturn in trading levels. Undoubtedly, Gleneagles has benefitted, and will continue to benefit, from the profile brought by the Ryder Cup, but the ongoing business improvement is underpinned by our track record of investment across the resort, our focus on quality guest relationships, and our determination to build upon our leading reputation for great service and hospitality.”
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