SALES of luxury apartments in the iconic Hamilton Hall building which overlooks the 18th hole of the Old Course in St Andrews, have been hit by the impact of Brexit.
Kohler & Co, owned by US billionaire Herbert Kohler Jr., acquired the red sandstone building in 2009, adding it to a property portfolio which includes the nearby Old Course Hotel.
After renaming the building Hamilton Grand, 26 apartments were made available with prices starting at £1.35 million.
New accounts have shown that Kohler & Co’s Scottish subsidiary, The Old Course Ltd, made an £833,736 pre-tax loss last year, against a £1.4 million profit in 2015.
In 2016 the business recorded revenue of £18.2m, down 18 per cent on the previous year when The Open was held at St Andrews. While sales at the Old Course Hotel increased because of higher occupancy rates, the fall in revenue was blamed on a reduction in apartment sales.
Writing in its accounts, Mr Kohler Jr., said Brexit was to blame for the slowdown in sales.
“The uncertainty surrounding the UK’s exit from the EU will present a risk in the selling of apartments by the company in 2017 and beyond,” he said, adding that there was hope the weakness of the pound would encourage more overseas tourists to visit the hotel.
The directors noted that 2016 saw the start of a major refurbishment of the hotel, which led to it closing for three and a months earlier this year.
Plumbing-to-property group Kohler & Co’s interests in the hospitality sector stretch to the five star Destination Kohler in Wisconsin, US, which is home to Whistling Straits, the golf course which will host the 2020 Ryder Cup.
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