(Image: Tony Marshall)
One of Scottish golf tourism’s flagship properties has reported weakening demand from North America for the first time since the Covid pandemic, in what could prove to be an early warning sign for the broader sector.
Accounts covering the 2025 financial year also provide fresh financial context for The Old Course Limited's decision to hand over the former Duke's golf course to St Andrews Links Trust on a long-term lease. With pre-tax losses rising between 2024 and 2025, the arrangement appears consistent with a greater concentration of management attention and investment on the core hotel and hospitality operation.
The company, which operates the Old Course Hotel, Golf Resort and Spa, reported a pre-tax loss of £1.15 million for 2025, compared with a loss of £890,000 a year earlier. Revenue fell by 2% to £30.3m. Directors attributed the decline partly to major refurbishment work at the hotel's spa and food and beverage operations, but also to "challenging trading conditions" and softer demand from North American visitors.
Read more:
The North American market has been a major driver of growth in golf-related tourism since pandemic restrictions ended. St Andrews, in particular, has enjoyed exceptional demand from overseas golfers prepared to pay premium rates for accommodation, tee times and hospitality packages.
Yet the directors state that demand from North America declined during 2025 "for the first time since the pandemic" as a result of political and economic uncertainty. While forward bookings remained stable, in-year bookings were weaker than expected.
That does not amount to a crisis for the sector, but it does suggest that some of the international travel demand that has underpinned record activity in recent years may be becoming less predictable.
Looking ahead, the company warned that ongoing geopolitical instability could affect food and utility costs, while the outlook for non-domestic travel demand remains uncertain. It also highlighted continuing inflationary pressure on labour, food, beverage and other operating costs.
Despite these pressures, the company invested heavily during the year. The accounts show almost £11m of additions to property, plant and equipment during 2025, while commitments relating to the continuing hotel refurbishment stood at more than £2.7m at the year-end.
The lease agreement with St Andrews Links Trust was identified as one of the most significant events since the year end. From the start of 2026, operation of the Duke's passed to the Trust, which has since rebranded the facility as Craigtoun.
At the time, the arrangement was publicly framed around increasing golf capacity within St Andrews and helping meet continuing demand for tee times.
The latest accounts do not explicitly state why the hotel group, owned by Wisconsin-based hospitality and manufacturing group Kohler since 2004, decided to transfer operation of the course to the Links Trust. However, they paint a picture of a business facing softer international demand and consecutive years of losses while simultaneously investing heavily in its core hotel product.
Read more:
In that context the lease appears consistent with a strategy of focusing management attention and capital on the accommodation and hospitality side of the business, rather than operating a standalone golf course.
The contrast with St Andrews Links Trust's own outlook is particularly striking. The trust has reported continuing record demand for golf in St Andrews and strong financial performance across its portfolio, fuelled by the global appeal of the Home of Golf.
The hotel's accounts suggest a more nuanced picture. Demand for golf in St Andrews may remain exceptionally strong, but that does not necessarily shield hospitality operators from wider economic pressures affecting international travel.
For now, the warning signs are limited. Revenue remains above £30m, substantial investment continued during 2025, and forward bookings were described as stable. Yet one of Scotland's most prominent golf tourism businesses has offered perhaps the clearest indication so far that the post-pandemic boom cannot be taken for granted – a message that is worth keeping in mind.
(Image: Damian Shields)