Conrad operator's profit down 22pc to €1.7m amid hotel spending programme
Pre-tax profits at the company that operates the five star Conrad hotel in Dublin last year declined by 22pc to €1.78m.
New accounts show that Earlsfort Centre Hotel Proprietors Ltd recorded the drop in pre-tax profit in spite of its gross profit increasing from €8.7m to €8.8m.
The drop in pre-tax profit coincided with the hotel continuing to invest in the business and the directors' report stated that during the year, the company continued its capital expenditure programme to reposition the hotel.
The directors said that the results for the year are considered to be satisfactory.
A large factor behind the drop in pre-tax profit can also be attributed to non-cash depreciation costs increasing from €1m to €1.49m.
Staff costs also increased, going from €5m to €5.3m as the numbers employed increased from 164 to 179.
The hotel is subject to a long term management agreement with Hilton Worldwide under the Conrad brand.
The company last year paid €1.18m in management fees to Conrad International Corporation.
Meanwhile, the healhy profits being recorded by Dublin hotels is continuing to result in planning applications for new hotels. Applications lodged with Dublin City Council in recent days include a proposal for an eight-storey 241-room apart-hotel on the Tedcastles site at North Wall Quay by TIO North Docks.
There is also an application for a 39-bedroom hotel by Bridlegrand Shamrocks Chambers Ltd on Dame Street/Eustace Street and a 38-bedroom hotel by Torchglen Ltd for Trinity Street and Andrews Lane in Dublin's city centre.