Profits rocket to €2.1m at D4 Hilton hotel as room rates increase by 20pc
A jump of 20pc in average revenue from rooms at the DoubleTree by Hilton hotel in Dublin 4 contributed to pre-tax profits increasing by almost eight fold to €2.15m last year.
New accounts filed by the hotel's firm show that the business achieved the sharp rise in pre-tax profits after revenues increased by 17pc, from €19.73m to €23.13m.
The pre-tax profit enjoyed last year is a 734pc increase on the pre-tax profits of €258,809 recorded in the November 21, 2012, to December 31, 2013, period.
According to the directors' report for DT Sussex Road Operations. "the maturing of the hotel under the management of Hilton is expected to provide positive company cash flows for the foreseeable future".
The directors reveal that the hotel achieved average room occupancy of 78.2pc compared to 68.5pc in 2013 while the average room rate in 2014 jumped by 20pc or €16 per room going from €78 in 2013 to €94.6 last year.
The firm's operating profit jumped more than four-fold from €504,000 to €2.293m. However, lower interest payments of €135,483 compared to €245,191 under the same heading in 2013 helped increase the pre-tax profit increase in 2014.
Staff costs last year totalled €6.534m with the breakdown in staff made up of 209 hotel staff and 25 in management and administration.
At the end of last year, the firm had shareholder funds totalling €2m. During the year, the firm's cash increased from €3.65m to €3.8m.
The firm's cost of sales last year increased from €9.57m to €10.14m while administrative expenses increased from €9.65m to €10.69m.
After paying corporate tax of €282,924, the firm recorded a post-tax profit of €1.875m.
The hotel is located on Burlington Road and includes a conference centre that has space for up to 1,400 delegates and a dedicated business floor with 18 conference rooms. The DoubleTree by Hilton brand operates 400 hotels in 33 different countries.
The Dublin hotel is leased by DT Sussex Road Operations and is subject to a long term management agreement with Maple Hotels Management Co - Hilton - who manage and operate it under the Doubletree by Hilton brand.
On the firm's going concern status, the directors state that having carried out a review of the hotel's financial projections, cash flow forecasts and funding available, they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The firm did not pay a dividend last year.