Profits decline 37pc at Skeffington Arms
The directors of Galway hotel, the Skeffington Arms, have warned of the challenge posed by technology to the business as pre-tax profits last year decreased by 37.5pc to €321,881.
New accounts show that the boutique hotel recorded the decrease in profit despite the gross profit going up from €4.47m to €4.6m in the 12 months to the end of September last.
According to the directors, the hotel faces a number of challenges including the changing world of technology and social media, increased costs of operations and the high level and intensity of competition.
The main factor behind the drop in profits is the €265,470 non-cash depreciation costs of assets last year, compared to €94,932 under that heading in 2016.
However, even with those risks outlined, the hotel has been able to cash in each year on the Galway Race week and the multitude of festivals that operate in Galway each year.
The directors state that the company plans to offer more mid-week and weekend packages in the hope of attracting more people to the hotel, thus improving overall occupancy levels.
The results for the year and the financial position of the company were considered satisfactory by the directors who assert that the company is well-positioned within the hotel and leisure industry, and that they expect to grow their market share in the future.
Numbers employed at the company last year declined from 98 to 93 while staff costs increased from €2.16m to €2.18m.
At the end of September last, the hotel firm had accumulated profits of €5.89m. The company's cash pile increased from €445,667 to €535,547.