Crerar Hotels’ chief executive flagged staff availability in the sector as “exceptionally challenging”, citing the effect of Brexit and the coronavirus pandemic’s impact on working habits, as he hailed growth in the group’s turnover and occupancy rates.

Chris Wayne-Wills highlighted a boost to Crerar Hotels’ results in the 12 months to March 25 this year from the return of international visitors, from countries including the US, Canada, Spain and China, noting the importance of this as the “staycation” market slowed with the ending of travel restrictions.

He said: “We do very well in the North American market. We also do very well out of Spain and there are some Chinese guests starting to return in this timeline [the year to March 2023] as well.”

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Mr Wayne-Wills revealed continuing growth in occupancy and achieved room rates in the current financial year.

Crerar Hotels reported a 31% increase in turnover to £19 million in the year to March 2023, from £14.5m in the prior 12 months.

Gross profit also increased by more than 30%, from £12.6m to £16.4m.

Crerar Hotels noted a further £2.4m had been invested in the upgrading of hotels and spas across the portfolio in the year to March.

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Staff numbers rose by nearly 17%, from 267 to 312, during the financial year and salaries and benefits were increased, which Crerar Hotels noted had in total resulted in an increase of more than £2m in spend across the group.

Mr Wayne-Wills said staff numbers remained above 300.

Crerar Hotels, built up by industry veteran Paddy Crerar, was sold to a joint venture between Blantyre Capital and operating partner Fairtree Hotel Investments in a deal announced in the spring.

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The group's portfolio takes in the Loch Fyne Hotel & Spa at Inveraray, the Oban Bay Hotel, the Isle of Mull Hotel & Spa at Craignure, the Balmoral Arms at Ballater on Royal Deeside, and the Golf View Hotel & Spa in Nairn, as well as Thainstone House in Inverurie and The Glencoe Inn. An eighth hotel has come into the Crerar collection in recent weeks with the group being given the management contract for Dunkeld House Hotel in Perthshire.

Crerar Hotels’ operating loss widened to £2.1m in the year to March, from £484,646 in the prior 12 months. And its pre-tax loss widened to £2.16m, from £495,177.

The group said: “While the company reported a pre-tax loss of £2.2 million, this loss incorporated the non-recurring costs of a company restructure and costs associated to the company sale.”

Asked which of the group’s hotels were most popular with overseas visitors, Mr Wayne-Wills said: “Mull is very popular, as is Oban as the gateway to the isles and [with] access to the ferries.”

He also flagged the Balmoral Arms’ popularity with international visitors given its proximity to Balmoral Castle.

Mr Wayne-Wills, who is also chairman of trade body UKHospitality in Scotland, said: “There has been a bit of a slowdown in the staycation market…so the return of international [visitors] was welcome. A lot of the international guests stay longer. They use the hotels as a base to explore the area.”

Sales in summer 2022 exceeded pre-pandemic levels, Crerar Hotels noted.

Commenting on the staff availability issues, Mr Wayne-Wills said: “It has been exceptionally challenging. That is obviously industry-wide.”

Analysing the factors behind these difficulties, he said: “It is post-Brexit. It is accelerated by the pandemic.”

He highlighted major steps taken by Crerar Hotels to attract and retain staff, noting pay rates and various benefits including payouts from a service charge pool.

Mr Wayne-Wills said: “I think it is about having a solid commitment to having jobs that do appeal to local people to come to work for us.”

Noting Mull and Glencoe were among Crerar Hotels’ locations, he added: “I know there is Scottish Government [work] about depopulation in some of these places. We are offering opportunities. We are giving people a lot of life skills as well as a very meaningful job in terms of living wage and above, and all the benefits on top of that.”

Mr Wayne-Wills noted Crerar Hotels’ use of apprenticeship and graduate schemes.

Asked if there had been any change for staff or customers as a result of the new ownership, Mr Wayne-Wills said: “No. I remain the CEO and my leadership team is in place - the same team. They [the new owners] have supported us. The…direction of the company has remained the same.”

He highlighted the benefits of heavy investment in recent years in the group’s hotels, in terms of higher room rates.

Mr Wayne-Wills also flagged investment in spa facilities at some of the group’s hotels and the benefits of this in boosting trade outside traditional peak times.

During the year to March, Crerar completed extensive redevelopment of the spas at its Inveraray and Nairn hotels. The group noted this gave it three “destination spas”, flagging the previous investment at the Isle of Mull Hotel & Spa.

Mr Wayne-Wills said: “There is a real trend in wellness travel.”

Crerar Hotels was recently voted the UK’s Small Hotel Group of the Year by the Automobile Association (AA).

Mr Wayne-Wills said of the year to March 2023: ““A main focus for us was to increase accommodation sales, following significant investment in our hotels which has significantly increased standards and hotel gradings. This key measurement has been successfully achieved during the trading period with a 16% increase in bedroom occupancy over the prior year, along with improvements in secondary spends of food and drink.”

He told The Herald: “That [occupancy] is up a good few percentage points again this year, and the achieved rates for bedrooms [are] up again as well.”

Mr Wayne-Wills said of the results for the year to March 2023: “Labour shortages and cost increases had a notable impact, albeit we remain in a better place to recruit and retain our high-quality staff and absorb supply price pressures than many of our competitors."

Asked about challenges ahead, he replied: “Much the same. Obviously labour shortages can affect our business. Cost increases can affect our business. We have had to work hard to retain and recruit the right team.”

He did not see any signs of high inflation or the rise in UK interest rates weighing on trading, noting the advances in occupancy and room rates.

Mr Wayne-Wills said: “We feel confident. We feel we are in a strong place to go into 2024.”