DURING what continue to be challenging times for the hospitality industry, it was encouraging to hear one of Scotland’s most esteemed operators report today that his business has now emerged “fully” from the pandemic.

Bill Costley, who owns Costley & Costley with wife Cath and son Andrew, underlined the Ayrshire hotel company’s recovery in new accounts which revealed a 54% rise in turnover to £8.26 million for the year ended September 30.

Central to the leap in revenue was the return to full strength of the weddings market, which underpins business at the group’s flagship Lochgreen House Hotel in Troon, as well as the revival of restaurant trade following long spells of Covid interruption.

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Mr Costley and his fellow directors said the £1.3m operating profit recorded by the firm was “deemed a good result” and is confident Costley & Costley will again be profitable in the current financial year, with its balance sheet supported by the recent sale of what had been one of its biggest venues, the Brig o’Doon House Hotel in Alloway.

However, Mr Costley, a classically trained chef who studied his craft at Versailles in France, made clear that the industry continues to face major challenges due to the severity of energy and commodity prices, as well as labour shortages, which show no signs of easing.

“I don’t think the industry will ever be the same again,” Mr Costley told The Herald. “I think prices will stay up; all the commodities will stay up.

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"There is a dearth of talent in the industry, there is no doubt about it. There are not enough people to go around. If you want really professional staff you have to pay through the nose for them. We hope we are at the top end, and at the top end you need to be consistently good, that is for sure.”

Yet it would certainly be wrong to assume Mr Costley is despondent. He said challenges brought by Brexit and Covid had forced the firm to “tighten up a lot” and become more “disciplined”, which has aided profitability and put it in a position to invest in its portfolio.

A major expansion is under way to add a new cocktail bar at Lochgreen, rooms are being refurbished at Highgrove House Hotel, and Cochrane Inn will reopen soon following a refurbishment.

Mr Costley said his ambition is to run a tight portfolio of outlets to an extremely high standard. Given his track record, few in the industry would bet against him achieving that aim.