A Scottish four-star hotel which is hosting a major event for disabled golfers this summer has posted a more than 800% increase in losses.
Accounts for the Westerwood Hotel in Cumbernauld show pre-tax losses widened from £587,000 to almost £5.4 million.
That was mainly due to a near £4m impairment charge and a rise in interest payments from £982,000 to more than £2m in the 12 months to January 1, 2012.
The Westerwood – which boasts an 18-hole championship golf course, 148-rooms, spa and conference facilities – is scheduled to host teams from around the world to compete in the World Disabled Team Cup golf tournament in July.
The accounts filed at Companies House show the business, owned by Leeds-based QHotels, saw its turnover increase from £5.4m to £5.7m although administrative expenses edged up from £4.4m to £4.5m.
Fixed assets tumbled from £20.4m to £15m after a revaluation saw the land and buildings written down by £3.6m and plant and equipment by £2.1m.
That came following an independent valuation by Christie + Co in July 2012. During the period, £527,000 of land and buildings was sold at the Westerwood along with £273,000 of plant and equipment. The net liabilities position widened from £13.1m to £18m.
Part-time staff numbers increased from 93 to 101 but full-time employees declined from 75 to 71. Overall employee costs rose from £1.87m to £1.94m.
Parent company QHotels Group went into administration on January 16 but all subsidiary companies were unaffected.
It was replaced by QHotels Holdings which now acts as a parent to the other companies. The administration came as the company agreed a new three-year refinancing with Irish Bank Resolution Corporation.
The accounts for Westerwood were prepared on a going concern basis.
The directors said: "QHotels Holdings has indicated that for at least 12 months from the date of approval of these financial statements it will continue to make available such funds as are needed by the company.
"In particular it will not seek repayment of the amounts currently made available by it or any other fellow subsidiary undertaking."
The amount the Westerwood is due to other companies in the group increased from £34.5m to £35.2m. QHotels has a portfolio of 21 properties with the Westerwood its only site in Scotland.
It was founded in 2003 by Michael Purtill and Ian Goulding, backed by private equity company Alchemy Partners.