Profits jump 17pc at four-star hotel
Pre-tax profits at the four-star Mespil Hotel in Dublin last year increased by 17pc to €2.5m.
Gross profits at the Dublin 4 hotel also increased by 16pc to €8.42m and the directors state that the jump in profits is reflective of the continuing recovery in the hotel sector in Dublin and the substantial investment by the company in refurbishing the hotel.
The hotel was approved by Fáilte Ireland as a four-star hotel in early 2016 as a result of the improvements made to the property. The company has said it intends to invest in the hotel to ensure that the quality of the property is of a very high calibre.
The directors state that the Dublin hotel market has seen a significant recovery over the past five years.
"The company has reduced its bank debt significantly over the period. The current outlook is positive and the shortage of investment in the number of hotel rooms in Dublin because of the recession does provide some comfort to the directors in relation to the risks and uncertainties facing the company."
The upgrade involved refurbishment of 175 rooms over two years and renovation of the ground-floor area.
The hotel recorded a 15pc increase in operating profits going from €2.289m to €2.633m in the 12 months to the end of September. The company recorded a post tax profits of €2.2m after paying corporation tax of €314,161.
The directors are Lee Kidney, Denis Kidney, John Kidney and Richard Kidney who was appointed in July of last year. Martin Holohan also served on the board during the year.
The Kidneys also operate the Sligo Park Hotel and separate accounts for that hotel show that the business recorded pre-tax profits of €437,431 last year.