Scottish group Crerar Hotels returned to profitability last year, despite disruptions to island ferry services.
The company, which operates seven hotels and inns, including the Isle of Mull Hotel in Craignure, was sold to Blantyre Capital Limited and Fairtree Hotel Investments in 2023 for an undisclosed amount.
Investments made by the new owners in the hotels contributed to a nearly 9% increase in group turnover, reaching £20.2 million between 26 March 2023 and 31 March 2024, according to the accounts.
During the year, Crerar returned to profitability with a pre-tax profit of £56,973, a significant improvement from the £2.1 million loss reported the previous year.
This was achieved despite ongoing cancellations and delays to island ferry services, which guests rely on to reach the Isle of Mull Hotel.
According to documents on Companies House, the hotels also faced capacity restrictions due to limited staff numbers.
accounts said: “Strong summer trading was experienced with particularly notable results coming from Balmoral Arms, Loch Fyne and Golf View,”
“Widely reported disruption in ferry services had a significant impact on the performance of the Isle of Mull Hotel & Spa. Labour shortages and price pressures continue to impact the business, but we prioritise investing in our people and processes to ensure we are in a stable position.”
Crerar experienced a 10% increase in room revenue compared to the previous year, along with higher spending on food and alcohol.
The group increased its hotel staff from 303 to 313 over the year but reduced the number of administration and support employees from 19 to 14.
Its total spending on wages and salaries dropped from £8.1m to £7.4m.
