Hodson Bay profits surge 14pc as new Dublin hotel work starts
Operating profits at the Hodson Bay hotel group last year increased by 14pc to €2.97m.
The group is controlled by the O'Sullivan family and is made up of the four-star Hodson Bay hotel outside Athlone; the four-star Sheraton hotel in Athlone town centre and the four-star Galway Bay hotel.
New accounts filed by Shermond Holdings Ltd show that the group enjoyed the jump in operating profits after revenues went up by 3pc, going from €29.54m to €30.47m in the 12 months to the end of February 28 last.
Group CEO, Padraig Sugrue said yesterday that the year to the end of February last "was a positive one for the group where we enjoyed good growth".
Mr Sugrue said that "it is a very exciting time for the group as construction work has started" on the group's first hotel in the Dublin market.
Mr Sugrue said that the group has pencilled in March 2019 for the opening of its 234-bedroom hotel at the Coombe near St Patrick's Cathedral in Dublin and that enabling works for the project are being completed at the moment.
The group is spending €40m on the scheme and Mr Sugrue said that the project will add between 160 to 190 jobs to the 500 jobs currently in the group.
"The new hotel will complement our hotels in Athlone and Galway," he said.
Mr Sugrue said that group has been slowly increasing its room rate over the past couple of years and rooms now have an average nightly room rate of around €95.
Mr Sugrue said that average room occupancy over the past year has been 75pc.
"The challenge is managing our growth and we believe it is being done on a sustainable basis," he added.
The group last year increased its pre-tax profits marginally going from €1.91m to €1.93m.
This group achieved the profit after paying loan interest of €1m.
The group's shareholder funds at the end of February last totalled €15.89m that included accumulated profits of €12.6m. The company's cash pile doubled going from €1.48m to €2.89m.
The profit last year takes account of non-cash depreciation costs of €2.12m. Staff costs at the group last year totalled €12.5m.
The group's cost of sales totalled €15.35m while the group's admin expenses totalled €10.5m.