Operating profits increase by 16pc at Fitzpatrick family's Killiney hotel
Operating profits at a four-star hotel business owned by one of the best known family names in the Irish hospitality industry increased by 16pc to €670,289 last year.
The 18th century Fitzpatrick's Castle Hotel in Killiney, Dublin, is owned by Eithne Scott-Lennon. Her brother John Fitzpatrick runs two landmark Fitzpatrick hotels in New York.
New accounts just filed for the firm that operates the 113-bedroom Dublin hotel show that gross profit at Killiney Hotels rose from €5.78m to €5.89m in the 12 months to the end of October 1 last.
The increase in operating profits followed the firm securing a €3.6m write-down on bank loans in 2014.
According to a note attached to the accounts, the company successfully refinanced the business during 2014, giving rise to the €3.6m bank write down.
Prior to the bank deal, the firm owed €10m in bank loans and overdrafts. The firm's net debt was €6m last October. The accounts show that the firm recorded a modest pre-tax profit last year of €20,962. This followed the firm's bank interest payments doubling from €320,947 to €644,692.
The directors' report for Fitzpatrick's Killiney hotel said they are very satisfied with the business's performance having consolidated the turnover and earnings growth achieved in 2015.
Last year, the two New York hotels owned by Irishman John Fitzpatrick made a combined after-tax profit of $2.3m (€2m), a period when the group achieved a record occupancy rate of 91pc. The operating profits at Killiney Hotels, meanwhile, takes into account administrative expenses of €5.22m.
Numbers employed by the Dublin hotel rose from 109 to 117 with staff costs, including directors' remuneration, increasing marginally from €2.91m to €2.99m.
The operating profit also takes into account of non-cash depreciation costs of €423,698. The firm recorded a post tax loss of €18,890 after paying tax of €39,852.
The firm's accumulated profits stood at €3.36m and the firm's cash pile increased to €339,867.