Operating profits at airport Radisson hotel reach €2.59m
Operating profits at the four-star Radisson Blu hotel at Dublin Airport last year increased by 44pc to €2.59m.
New accounts show that CG Hotels recorded the sharp increase in operating profits in spite of revenues dipping marginally to €13m.
According to the directors' report, the group has forecast a strong trading position for 2016 and intends to continue its implementation of a range of capital projects designed to enhance the property. The 228-room airport hotel is the last remaining hotel of the three airport hotels that were purchased from the DAA for around €75m.
The Shannon and Cork airport hotels were sold for a knockdown €5.42m in 2014 and the group retained its best-performing hotel. The group made a net profit of €2.46m on the sales.
The proceeds of the sale of the hotels went towards paying down bank debt. The firm's operating profits increased after the group's cost of sales decreased from €9.88m to €9.59m.
The operating profit last year takes account of non-cash depreciation costs of €790,019.
The group last year recorded a pre-tax loss of €8m and this arose from interest payable charges of €15m. The interest payable arose from a loan valuation adjustment. The uplift in property prices and the general uplift in the hotel industry last year resulted in the book value of the Radisson hotel recording an increase of €4.5m. This followed an independent valuation carried out by Savills. The 2015 gain followed a gain on revaluation of €4.6m in 2014.
At the end of December last year, the hotel had a book value of €31.69m.
Numbers employed by the hotel last year reduced from 130 to 105 with staff costs declining from €4.268m to €3.74m. Key management personnel were last year paid €187,527.
The directors of CG Hotels include Ben Walsh, whose family owns the Poplar Linens business, Scottish accountant Alan McIntosh and Patrick Coyle. The accounts show that the Mr Coyle's Windward Management, which acted as a consultant to the group during the year charged fees totalling €480,798 and was owed €338,118 at year end. At the end of last year, the group's shareholder funds totalled €467,575. The group's cash during the year increased from €2m to €3.16m.
The Radisson will face increased competition in the near future with the DAA recently announcing plans for a 402-bedroom hotel beside the airport's T2 building. The hotel will employ 250 when built.