Merrion enjoys five-star profits as revenues climb to €17.64m
Published 16/09/2015 | 02:30
Pre-tax profits at the one of the best known five star hotels in the country, the Merrion Hotel last year decreased by 11pc to €1.45m.
The drop in pre-tax profit came in spite of the hotel's revenues going up by 5pc from €16.8m to €17.64m in the 12 months to the end of October last.
The hotel is the hotel of choice for President Barack Obama, superstars, Rihanna and Bruce Springsteen along with the members of the Troika when they came to Dublin.
The hotel has in spite of its five star room rates consistently recorded strong profits during the recession and the pre-tax profits of €1.45m last year follow pre-tax profits of €1.63m in 2013, €1.68m in 2012 and €1.598m in 2011.
The multi-award winning hotel comprises of 123 rooms and 19 suites and guests can pay €310 for a standard room to €3,200 for the penthouse suite while the hotel offers various deals on its advertised rates.
The revenues at the hotel - which houses the two-star Michelin-starred Patrick Guilbaud - last year work out at revenue per room of €126,923 taking into account food and beverage sales.
In January, the hotel embarked on the 22 month long construction programme that added the 12 new private residences, a new spa and restaurant overlooking the hotel garden.
The pre-tax profit also takes into account the non-cash depreciation cost of €436,961 last year and the rise in depreciation costs last year compared to a much lower depreciation charge of €276,686 in 2013 was a significant contributor to the lower pre-tax profits last year.
The Merrion Hotel is controlled by businessman, Lochlann Quinn, Glen Dimplex founder and billionaire, Martin Naughton, and the Hastings Hotel Group, the Northern hotel company controlled by Billy Hastings.
The firm confirmed a dividend of €96,083.
Separate accounts filed by the firm that owns the Merrion hotel, Landmark Investments Ltd puts a book value of €41.8m on the property.
Last year, Landmark doubled its pre-tax profits to €364,990 after taking into account bank loan interest payments of €1.18m.
Ahead of the expansion of the hotel, the Landmark accounts show that the Hastings Hotel Group advanced Landmark a further €1m in loans last year bringing the total amount advanced to €14.97m.
Lochlann Quinn and Martin Naughton each advanced a further €500,000 to Landmark bringing the total amount advanced by Mr Quinn and Mr Naughton to €7.47m each.
Landmark's bank loans during 2014 reduced from €31.29m to €29.29m.
The profit at subsidiary, Hotel Merrion Ltd last year resulted in the company having accumulated profits of €3m.
Numbers employed increased last year from 278 to 281 and staff costs went up from €7m to €7.2m.
After taking into account corporation tax of €238,202, the firm's after tax profits totalled €1.2m.