Business Irish

Monday 23 July 2018

Parknasilla reveals profits jump as demand surges

Parknasilla in Co Kerry was bought by a consortium for €11m
Parknasilla in Co Kerry was bought by a consortium for €11m

Gordon Deegan

Operating profits at one of the best known four-star hotels in the country, Parknasilla in Co Kerry in 2016 totalled €1.4m.

Accounts recently filed by Silork Ltd show that the business recorded the jump in operating profits after the firm's gross profit went up by 16pc from €5m to €5.8m.

"2016 was a good year overall with an early season boost of St Patrick's week holidays plus 1916 commemorations," said managing director Tony Daly.

"Demand was strong and continued to late season with a very positive Christmas and New Year period."

He added: "2017 showed a growth of 8pc on 2016 with a strong performance from the domestic market. International markets also increased."

He said that the resort recorded revenues of €8m in 2017

On 2018, Mr Daly said that the year "is looking at being another good year for tourism - there is increased demand and advance reservations are strong".

On the challenges facing the business, Mr Daly said: "Costs are increasing across the board from insurance to IT contracts and software."

He added that almost €4m has been spent on upgrading the property and providing more services since 2013.

The firm's cash pile during the year decreased from €1.15m to €928,766.

The resort is made up of the Parknasilla hotel along with villas and lodges.

Mr Daly added that the Wild Atlantic Way has been a great marketing aid for the hotel -and not for the first time.

"The Great Southern and Western Railway promoted a 'The Grand Atlantic Tour' back in 1910 using their hotels along the West and South West Coast. I expect we are one of the few hotels who benefited twice from such a promotion," he said.

The hotel's operating profit takes account of non-cash depreciation costs of €348,146, foreign exchange losses of €397,979 and interest payments of €898,927.

Silork Ltd recorded pre-tax losses of €245,767 after those costs are factored in.

Staff costs increased from €2.1m to €2.47m in 2016.

Parknasilla Resort and Spa in Sneem was bought in December 2012 for €11m by a consortium of investors led by Kenmare businessman Mr Daly and Swiss financier Jacquie Safra, who has owned neighbouring Garinish Island since the 1990s.

This was a fraction of the €40m paid for the hotel in 2006 by property developer Bernard McNamara.

Irish Independent

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