The Old Course Hotel in St Andrews has reported a pre-tax loss of £890,000 amid rising revenues but saw its net liabilities more than double to £9.1 million following increased borrowing from American parent company Kohler.
According to its latest accounts, and as reported in the Scottish Financial News, the five-star Scottish resort, which also owns the Hamilton Grand apartment building and manages The Duke’s Course in St Andrews, reported revenues of £30.8m in the year to December 2024, a 9% increase driven by improved pricing strategies.
This resulted in an operating profit of £1.5 million. However, rising financing costs kept the business at a pre-tax loss of £890,000, an improvement on the £1.4m loss recorded in 2023.
The increase in liabilities was fuelled by a rise in borrowing from other parts of the Kohler group, which grew from £3.3m to £8.7m. Directors at the hotel stated they have received a letter of continued financial support from Kohler and are confident they can manage its business risks.
On the operational front, the hotel benefitted from a new combined heat and power system installed in April last year, which has reduced utility costs and promises substantial future energy savings, while the resort’s renowned Jigger Inn pub also reopened last May following a significant refurbishment.
Kohler is currently in advanced negotiations to hand over the management of the nearby Duke’s Golf Course to the St Andrews Links Trust. The move, expected to be concluded by the end of the year, is intended to help alleviate high demand across the Trust’s other courses in the town.
