Diageo paid £42m by five star Gleneagles hotel

Diageo received almost £42 million in dividends from its five star hotel subsidiary Gleneagles last year, as the drinks giant reportedly prepares to sell the property.

The five star Gleneagles hotel paid its parent company Diageo £42m in dividends last year

As reported by This is Money, the bumper transaction marked the first time the Smirnoff vodka maker had received such funds from Scotland’s Gleneagles, based in Perthshire, for “several years”.

In February this year, reports speculated that Diageo had put Gleneagles up for sale following “numerous expressions of interest”.

The luxury resort, which features 232 bedrooms, 12 function rooms, a number of restaurants and three golf courses, is expected to fetch approximately £200m.

Diageo attempted to sell the property in 1998, however bids failed to reach the £100m asking price.

Accounts to 30 June 2014 show that turnover at Gleneagles increased 12% to £43.6m, while profits soared from £262,000 to £4.3m.