Skip to content
Home » Staycations Decline And Rise Of Cost-Of-Living Crisis Slashes Profits At Luxury Lake District Hotels

Staycations Decline And Rise Of Cost-Of-Living Crisis Slashes Profits At Luxury Lake District Hotels

Profits more than halved at a group of luxury Lake District hotels as the post-pandemic surge in staycations subsided and the cost-of-living crisis emerged.

Lake District Hotels Ltd, which is run by the Graves family, owns Lodore Falls Hotel & Spa near Keswick, Inn on the Lake, Glenridding, Borrowdale Hotel as well as Inn on the Square, Skiddaw Hotel and Kings Arms Hotel in Keswick. The Graves family also own Armathwaite Hall Hotel separately.

For the 12 months to March 31, 2023, Lake District Hotels Ltd reported pre-tax profits of £5.3m, down from the £11.2m it achieved in the prior year. Its turnover also fell from £27.2m to £25.8m over the same period.

READ MORE: Losses double at Matillion as tech unicorn continues to invest and create 150 jobs

READ MORE: Click here to sign up to the BusinessLive North West newsletter

According to separately filed accounts with Companies House, Armathwaite Hall Hotel’s pre-tax profits were cut from £2.2m to £460,098 while its turnover went from £7m to £6m.

A statement signed off by the Lake District Hotels board said: “In the prior period, and the start of this financial year, the hotels benefitted from a surge in UK staycations following the coronavirus pandemic and business was exceptional. Trade is starting to fall back in line with pre-pandemic levels as restrictions on travelling abroad have now been lifted.

“The UK is also now experiencing a cost-of-living crisis caused by surging inflation and interest rate hikes. Therefore, customers do not have as much disposable income as before.

“Nevertheless, the Lake District remains a very sought-after tourist destination. The hotels have a lot of facilities to offer and are a popular choice for weddings and spa days.

“The directors seek to maintain the hotels to a very high standard, placing them in the luxury end of the market; funds have been reinvested back into the business. The Kings Arms and the Borrowdale Hotels have undergone major refurbishment and the Inn on the Lake has benefitted from a refurbishment to the outdoor lakeside terrace.”

It added: “The company is continually assessing its market position and the directors actively seek ways to grow the business and take advantage of business opportunities as they arise. The company has taken advantage of interest rate rises on savings.”

Story Saved

You can find this story in My Bookmarks.Or by navigating to the user icon in the top right.