Profits double to €2.28m at revamped Conrad hotel
Published 01/12/2016 | 02:30
Pre-tax profits more than doubled at the five- star Conrad hotel in Dublin last year to €2.28m.
Benefiting from the boom in the hotel sector in Dublin, the luxurious Conrad, located off St Stephen's Green, recorded the sharp increase in profits after revenues increased by 18pc, going from €12.95m to €15.25m last year.
Seeking to capitalise further on the massive demand for hotel rooms in the capital, the Conrad - which last month hosted the New Zealand rugby team - unveiled a major refurbishment in October this year which took 10 months to complete and cost €13m.
The new look for the Conrad, inspired by Dublin's literary heritage, consists of new designs for each of its 192 bedrooms and suites, a complete transformation of its Presidential Suite and a new lobby area influenced by the work of the architect Ninian Niven, of the nearby Iveagh Gardens.
The hotel is also home to a new brasserie-style restaurant called The Coburg as well as a lounge and cocktail bar called Lemuel's.
The accounts show that the hotel recorded an operating profit of €3m in 2015, that followed an operating profit of €1.38m in 2014 - an increase of 116pc. However, last year interest payments almost doubled - rising to €716,194 - and this reduced the firm's profits to €2.28m. The firm's cost of sales increased from €6m to €6.5m while administrative costs went up from €5.2m to €5.7m.
The profit last year takes account of non-cash depreciation costs of €1m. The firm recorded post tax profits of €2.16m after paying corporation tax of €120,126.
The numbers employed increased from 160 to 154 with staff costs going up from €4.79m to €5.05m. Shareholder funds at the firm last year totalled €6.4m. This included called-up share capital of €4.68m, a revaluation reserve of €4.8m and accumulated losses of €3m.
The firm's cash pile last year increased from €3.725m to €4.8m. The investment in the hotel in 2015 saw its book value increase from €20.7m to €21.16m.
The hotel is subject to a long-term management agreement with Hilton Worldwide under the Conrad brand. No management fee is included in the 2015 accounts but in 2014, the hotel incurred €747,871 in management charges and related fees from Conrad International Corporation.
In 2007, former billionaire developer, Bernard McNamara purchased a 45pc share in the business. Mr McNamara resigned as a director in February 2012.