Powerscourt returns to operating profit as revenues soar to €18m
The firm that operates the award-winning Powerscourt Hotel in Co Wicklow last year recorded an operating profit of €228,886 after revenues soared.
New accounts just filed by Sugarloaf Ventures show that revenues increased by 22pc, rising from €14.96m to €18.38m.
The operating profit of €228,886 followed an operating loss of €692,994.
However, the firm recorded a pre-tax loss of €136,379 in the 12 months to the end of last year and this followed interest payments of €365,379.
The pre-tax losses last year had narrowed sharply on the €975,009 recorded in 2014.
Recently, the hotel received a boost when it won a World Travel Award as Ireland's leading hotel.
The five-star hotel is set on a 1,000-acre estate and is located near the village of Enniskerry.
In October 2013 it rebranded as part of Marriott Autograph Collection of Luxury Hotels.
The hotel's amenities include 194 guest rooms, including 93 suites and a 30,000 square foot spa with 20 treatment rooms, two championship golf courses, a traditional Irish pub and facilities for events, conferences and weddings.
The hotel's owner, Tetrarch, also operates the Marker Hotel in Dublin, the Mount Juliet resort in Kilkenny, Citywest in Dublin and the four star Killashee House hotel in Co Kildare.
Online advertised room rates for a night at the hotel next month range from €261 per night to €325 per night.
At the end of December last, the firm had accumulated losses of €5.83m. The firm's cash pile increased sharply last year going from €618,340 to €1.08m.
The operating profit of last year takes account of lease payments of €730,252 and the non-cash depreciation of tangible assets of €593,410 and €37,806 in amortisation of assets.
Underling the increased business, numbers employed continued to increase - from 270 to 304 - with 261 in operational; 39 in 'other administration' and four in finance. Staff costs last year rose from €6.54m to €7.63m.
Powerscourt was built by Johnny Ronan and Richard Barrett of Treasury Holdings and was bought by BCP and Midwest Holding for a knock-down price in 2013.
The accounts show that last year the hotel recorded a gross profit of €10.12m after incurring cost of sales at €8.26m. The firm's administrative expenses of €9.89m resulted in the operating profit of €228,886.
The hotel was well placed to benefit from the increased buoyancy in the hospitality sector last year with the average national room occupancy rate for hotels and guesthouses reaching a 10-year high of 70pc in 2015. This compares with a 64pc occupancy rate the previous year.
Also, the Irish Hotels Federation reported that 85pc of hoteliers are seeing increased levels of business this year from the home market.
Total revenue generated across all tourism-related businesses in 2015 was up 10.7pc at €7.27bn and accounted for 4pc of GNP. Of this, €5.76bn was attributed to foreign exchange earnings from overseas visitors and €1.51bn on to domestic tourism.