Crerar Hotels makes a profit

The Scottish group Crerar Hotels returned to profitability last year, despite disruptions to ferry traffic on the islands.

The company, which operates seven hotels and guest houses, including the Isle of Mull Hotel in Craignure, was sold to Blantyre Capital Limited and Fairtree Hotel Investments in 2023 for an undisclosed price.

The new owners’ investments in the hotels increased the group’s turnover by almost 9% and, according to the accounts, was 20.2 million pounds from March 26, 2023 to March 31, 2024.

During the year, Crerar returned to profitability with a pre-tax profit of £56,973, a significant improvement on the previous year’s loss of £2.1m.

This was achieved despite ongoing cancellations and delays to the island’s ferry services, which customers rely on to get to Isle of Mull hotels.

According to Companies House documents, the hotels also had capacity constraints due to limited staff numbers.

the accounts said: “Strong summer trade was experienced with particularly notable results from the Balmoral Arms, Loch Fyne and Golf View.”

“The disruptions reported in the ferry service had a significant impact on the operations of the Isle of Mull Hotel & Spa. The labor shortage and price pressures continue to affect the business, but we invest primarily in people and processes to ensure our stable position.

Crerari’s room revenue increased by 10% compared to the previous year, and food and alcohol expenses increased.

The group increased its hotel staff from 303 to 313 during the year, but reduced the number of administrative and support staff from 19 to 14.

Its wage bill fell from £8.1m to £7.4m.