The company behind the Celtic Manor Resort in Newport has reported a pre-tax loss of almost £13m.
The Celtic Collection said the latest accounts showed the “devastating impact” the pandemic has had on the business.
Despite the loss the company is optimistic for the future with its Parkgate Hotel, a joint venture with the Welsh Rugby Union, is to open in Autumn, and premises on Milford Haven Waterfront next year.
The group is currently recruiting to fill 250 vacancies across the business.
At the moment the company has 688 permanent staff, down from 958 pre-Covid. The group also employs around 300 casual staff.
The effects of both Covid and Brexit have created a “perfect storm” in recruitment resulting in severe issues across the hospitality industry. The Celtic Collection said that pre-Covid around 20% of its staff were EU nationals, that figure is now down to around 5%.
According to the annual report, filed to Companies House, sales were down to £21.6m in 2020, compared to £58.7m in 2019, while Ebita (earnings before interest, taxes, and amortization) fell to -4.4m from £7.5m.
The pre-tax loss of £12.9m was compared to a profit of £566,000 in 2019.
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The average occupancy for the group’s hotel also showed the impact of the pandemic. The Celtic Manor saw an average occupancy for the hotel at 34% compared to 92% the previous year, The Coldra Hotel fared better with 58% compared to 88% in 2019, while Ty Magor’s occupancy was just 23% compared to 73%.
A spokesman for The Celtic Collection said: “The losses reported in the annual accounts filed at Companies House show the devastating impact of the pandemic on The Celtic Collection during 2020, when our business was not allowed to open for many months and facilities were severely restricted at other times.
“We have taken steps to make the business resilient for the future and the present outlook is much more positive with our hotel properties and leisure facilities experiencing record demand during the current staycation boom in the 海角视频 and events having recently been given the go-ahead to resume.
“The Celtic Collection has also been able to proceed with exciting expansion plans and looks forward to opening and operating new venues at The Parkgate Hotel, Cardiff, in Autumn 2021 and Tŷ Hotel Milford Waterfront in Spring 2022.”
The group says although it does not expect activity levels to reach pre-Covid-19 levels until 2022 they are continuing to seek strategic opportunities to expand its future operations.
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The Parkgate Hotel is a joint venture between the WRU taking a 75% stake in the operation and the property development company Rightacres taking the remaining 25%. The Celtic Collection will operate the four-star hotel on behalf of the two companies.
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Tŷ Hotel Milford Waterfront will be located at the entrance to Milford Waterfront and overlooking Milford Marina, the hotel will be operated and managed by the team behind the Celtic Collection when it opens in the Spring of 2022.
The hotel is being built in partnership with the Port of Milford Haven and is part of the Celtic Collection’s growing portfolio of Tŷ Hotels. The new venue will have 100 guest bedrooms, a restaurant, and bar, as well as a private dining area and an activity suite.
At the start of the year, the International Convention Centre Wales (ICC Wales) secured a seven-figure funding boost to help safeguard its future, which included £1m in equity backing from the Celtic Collection. The Welsh Government also invested £1m in the centre which closed in March 2020 due to the pandemic. The £83m ICC Wales only opened its doors in September 2019.
The annual report states the Celtic Collection’s parent company, the Wesley Clover International Corporation, will provide financial support as is required to ensure it is able to meet all obligations for at least the next 12 months.