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Gresham Hotel returns to profit as revenues surge to €7.78m

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The Gresham Hotel on Dublin’s O’Connell Street

The Gresham Hotel on Dublin’s O’Connell Street

The Gresham Hotel on Dublin’s O’Connell Street

The four star Gresham hotel on Dublin’s O’Connell Street last year returned to pre-tax profit to record pre-tax profits of €1.57m.

The Gresham Hotel Company Ltd returned to profit after revenues increased by 38pc from €5.6m to €7.78m in the 12 months to the end of December last.

However, during the hotel’s second Covid-19 impacted year, revenues remained some way off the pre-pandemic revenues of €21.19m recorded in 2019.

The pre-tax profit of €1.57m last year followed pre-tax losses of €1.53m in 2020.

The firm only recorded the pre-tax profit in 2021 after receiving Covid-19 wage subsidy scheme payments of €2.7m last year which appear as ‘other operating income’ on the company’s profit and loss account.

The company received Covid-19 wage subsidy payments of €715,688 in 2020.

The firm did not pay out a dividend last year after paying dividends of €6.1m in 2020 to parent firm, Ryan Travel Holdings Ltd.

The pretax profit for 2021 takes account of non-cash depreciation costs of €1.56m.

At year end, that hotel firm’s shareholder funds totalled €48.5m that included accumulated profits of €39.13m. The directors state that they were satisfied “with the level of retained reserves at year end”.

A breakdown of the firm’s revenues show that room sales increased from €4.15m to €6.15, while bar and food sales increased from €1.33m. to €1.54m. Numbers employed increased from 188 to 205 as staff costs increased from €3m to €3.3m. The hotel was purchased by Spain’s RIU Group for €92m in 2016

On the company’s capital commitments, the accounts reveal that the the firm had committed to paying €2.8m for building works. The company’s cash funds increased from €1.26m to €2.3m.

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