Old Course Hotel St Andrews Reports £890k Loss Despite Revenue Boost
The Old Course Hotel in St Andrews has reported a pre-tax loss of £890,000 for the year to December 2024, despite a 9% increase in revenues to £30.8m. The hotel, owned by Kohler, saw its net liabilities more than double to £9.1 million due to increased borrowing. However, the hotel has received a letter of continued financial support from Kohler and has also secured a new combined heat and power system, promising future energy savings.
The hotel's revenues grew thanks to improved pricing strategies. However, rising financing costs offset the operating profit of £1.5 million, leading to the pre-tax loss. To offset net liabilities of £9.1 million, the AJ Capital Partners group provided mezzanine loans to the hotel. Meanwhile, Kohler is in advanced negotiations to hand over the management of the nearby Duke's golf course to the St Andrews Links Trust. The Jigger Inn pub, a popular attraction, reopened in May 2024 following a significant refurbishment, which is expected to boost the hotel's future revenues.
Despite the pre-tax loss, the Old Course Hotel in St Andrews has shown resilience with increased revenues and cost-saving initiatives. With continued support from Kohler and potential new management for the Duke's golf course, the hotel looks to a brighter future.
