Artfarm’s Fife Arms Hotel faces financial challenges despite growth

Artfarm Ltd reports significant losses while expanding its hospitality offerings.

The luxury Fife Arms Hotel, located in the picturesque village of Braemar, has reported a significant increase in pre-tax losses for the year 2023. According to newly filed accounts for its parent company, Artfarm Ltd, losses more than doubled from £3.3 million in 2022 to over £6.6 million last year. This financial setback comes even as the company experienced a 12% increase in turnover, rising from £15.4 million in 2022 to £17.3 million in 2023.

Revenue growth amid rising losses

Despite the alarming rise in losses, Artfarm’s chief financial officer, Jonathon Cornaby, emphasized that the year marked a period of remarkable growth for the hospitality group. The company, which also operates Ballater’s Fish Shop and Farm Shop in London’s Mayfair, has seen a surge in bookings at the Fife Arms, achieving an occupancy rate of 73%, up from 70% in the previous year. Sales at the hotel increased by 16% year-on-year, contributing to a positive EBITDA of £2 million.

Strategic developments and future plans

Artfarm’s strategy appears focused on long-term growth, with Cornaby stating that 2023 was a foundational year in preparation for further expansions planned for 2024 and beyond. The company has invested heavily in its properties, including the Fife Arms, which underwent a multi-million-pound refurbishment before reopening to the public in 2018. The hotel has garnered significant attention, being featured on prestigious lists such as the ‘Top 50 Boutique Hotels’ and The Times’ ‘Best Places to Stay 2024’.

Community engagement and new ventures

In addition to its financial endeavors, Artfarm has made strides in community engagement. The company recently opened a new Fish Shop restaurant in Ballater, which has received favorable reviews from critics and was recognized as one of The Michelin Inspector’s Favourite New Restaurants. Furthermore, Artfarm has acquired the nearby Braemar Kirk, aiming to enhance the hospitality offerings at the Fife Arms. This acquisition aligns with Artfarm’s mission to find unique sites with historical significance and to collaborate with local artists and craftspeople.

As Artfarm continues to navigate its development phase, the directors remain optimistic about the company’s future. They have received assurances from the parent company regarding ongoing support, indicating a commitment to overcoming current financial challenges while enhancing the overall guest experience.