GLENEAGLES Hotel has moved back into profit after an upturn in bookings from the corporate and leisure markets.
The luxury resort saw its turn-over increase from £33.7 million to £35.7m in the 12 months to June 30, 2011, even though the Dormy Clubhouse bar and grill was closed for six months as part of a £2.9m refurbishment.
The increase in bookings resulted in the previous year's £745,000 loss being turned around into a profit before tax of £595,000.
Cost management in back-of-house areas and improved services in guest-facing facilities also contributed to profitability.
David Kemp, finance director, said: "The financial results for the year reflect some early signs of recovery from the economic downturn.
"Room volumes increased by 8% and the average room rate was unchanged compared to the previous year.
"Growth occurred in both corporate and leisure markets. We have found that businesses have begun, again, to recognise the importance of getting together for meetings and of developing relationships with suppliers and customers.
"Also, we have continued to provide added value room promotions to our leisure customers at certain times of the year, which have been enjoyed and appreciated."
The hotel has also been increasing its headcount ahead of hosting the Ryder Cup in September 2014.
Employee numbers jumped from 757 to 858 having stood at 682 in 2009.
The majority of new recruits in 2011 were in part-time positions with 80 hires while the 21 additional full-time workers brought numbers in that category to a total of 629.
As a result, staff costs only increased slightly from £14.7m to £14.8m.
Mr Kemp said the hotel was still investing in services and infrastructure improvements in spite of the difficult economic conditions.
"Trading in the current financial year remains challenging, but is broadly in line with the year ended 30 June,2011," Mr Kemp continued.
"Investment in the business is continuing with the closure during the winter of the PGA Centenary Course for the final major changes, overseen by Jack Nicklaus, as we plan towards the Ryder Cup in 2014. "These changes include exciting redesigns of the 9th and 18th holes together with added technology to improve greens drainage.
"In addition, we have recently launched 'ESPA Life', a new concept in wellness spa provision.
"We remain confident that business levels will continue to grow as we build towards 2014."
Directors' remuneration fell from £751,000 to £479,000 partly due to chairman Peter Lederer now receiving his emoluments from another Diageo group company. The highest paid directors saw their rewards package decline from £303,000 to £282,000.
The Caledonian Railway Company built the hotel in 1924 and it was nationalised along with the railway system in 1948. It was put back into private hands in 1981 then bought by drinks company Bells.
Since the merger of Guinness and Grand Metropolitan in 1997 it has been owned by Diageo.
The Perthshire hotel has held a five red-star rating from the AA since 1986.
The resort is home to three championship golf courses with the PGA Centenary Course chosen to host the 2014 Ryder Cup.
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