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No-frills hotel chain returns to operating profit

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Seamus McGowan, Managing Director of Travelodge

Seamus McGowan, Managing Director of Travelodge

Seamus McGowan, Managing Director of Travelodge

Travelodge's no-frills formula helped the Irish arm of the hotel business to return to operating profit last year as revenues rose 28pc.

The firm's low cost model allows it to advertise rooms for €39 and less.

New accounts show that the Irish arm of Travelodge, Smorgs (Ireland), recorded an operating profit of €69,703 last year, after the firm recorded an operating loss of €480,857 in2013.

It paid a dividend of €146,000 last year and this followed a dividend payout in 2012 where the firm's two owners, Richard O'Sullivan and Seamus McGowan, above, enjoyed a share windfall of €15m. The firm recorded a pre-tax loss €1m after it incurred a property write down of €1.13m. Directors' emoluments increased from €186,840 to €217,656.

Numbers employed fell from 136 to 103 with staff costs of €2.18m.

The loss takes account of depreciation costs of €305,647.

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