This growth is attributed to strong summer sales surpassing pre-covid levels. The group, which includes seven award-winning hotels in Scotland, also reported a substantial investment of £2.4m in enhancing its hotels and spas.

As an ‘employer of choice’, Crerar Hotels has also boosted staff numbers by more than 16% – increasing the staff total from 267 to 312 – and increased salaries and benefits, which resulted in a total of more than a £2m increase in spend across the group.

At the end of the financial period Crerar Hotels was acquired by new owners (15 March 2023). Crerar’s seven four- and five-star hotels will now form a key part of the new owners’ plans to build a significant luxury UK hotel portfolio.

While the company reported a pre-tax loss of £2.2m, this loss incorporated the non-recurring costs of a company restructure and costs associated to the company sale. Crerar Hotel’s CEO is confident that as a result of the new ownership, the company will continue on an upward trajectory.

During the year, the business completed the extensive redevelopment of the spas at Loch Fyne Hotel, Inverary & Golf View Hotel, Nairn. This gives Crerar Hotels three destination spas including the previous investment at the Isle of Mull Hotel & Spa. These investments form part of the strategy to address the traditionally lower demand in the winter months along with the trend for year-round appeal for spa breaks and wellness travel.

Crerar Hotels also invested in the hotel formerly known as the Deeside Inn, Ballater to create a new AA five-star rated Inn called Balmoral Arms.

Chris Wayne-Wills, CEO of Crerar Hotels, said: “It is incredibly encouraging to be able to reflect on a positive year for Crerar Hotels. We have demonstrated our ongoing commitment to building and strengthening our proposition, whilst ensuring our people are well looked after and valued. We are really starting to see the fruits of our investments.”

“Strong summer trading was experienced with particularly notable results following prior year investment projects such as the Isle of Mull and the Glencoe Inn and we saw the return of our international visitors. Whilst autumn and winter trading saw a gradual move towards prior year booking patterns, strategic decisions saw a larger volume of group business at Oban Bay which was particularly beneficial to overall group performance.”

“A main focus for us was to increase accommodation sales, following significant investment in our hotels which has significantly increased standards and hotel gradings. This key measurement has been successfully achieved during the trading period with a 16% increase in bedroom occupancy over the prior year, along with improvements in secondary spends of food and drink.”

Mr Wayne-Wills continued: “Labour shortages and cost increases had a notable impact, albeit we remain in a better place to recruit and retain our high-quality staff and absorb supply price pressures than many of our competitors.

“The ongoing issues associated with labour and supply lines meant all investment projects overran into the summer and autumn of 2022, which impacted on the ability of these properties to fully trade. However, these properties have achieved numerous industry awards and accolades and have performed extremely well post-refurbishment.”

Mr Wayne-Wills added that the current financial year would continue to bring its own new set of challenges but remains confident that Crerar Hotels is in a strong position to navigate these.

He concluded: “We have continued to focus on our investment in our people and our hotels. Our future potential continues to thrive, and we remain steadfast in our commitment to our guests, our properties and our team.

“We are assured about the future and under the new ownership, we will continue to confidently invest and play our part in ensuring Scotland is a world-class destination with warm hospitality at its heart.”