Profits soar at upgraded four-star hotel in capital
Operating profits at the Mespil Hotel in Dublin last year rose by 60pc to €2.289m.
The hotel recently upgraded to four-star status after renovating its rooms and ground floor area. According to the directors, the upgrade "will enhance profitability significantly".
The directors' report stated: "The company's financial position remains strong.
"The majority of the operating profits were applied towards servicing debt and capital investment in the hotel."
The directors said that in the 12 months to the end of September last, the company completed the renovation of 75 bedrooms and was scheduled to renovate another 100 before the end of March this year along with a complete renovation of the ground-floor area.
Gross profit increased by 11pc, from €6.5m to €7.3m, to the end of last September.
Pre-tax profits fell by 10pc, from €2.39m to €2.15m. This arose chiefly from the firm incurring €137,007 in interest charges last year compared to a gain of €952,707 under that heading in the prior year.
Accumulated profits increased from €19.22m to €21m while the company's cash pile rose from €18,917 to €530,987.
Numbers employed increased from 71 to 73 with staff costs last year totalling €3.042m. Pay to directors rose from €583,361 to €594,223. Separate accounts for the business's sister hotel, the Sligo Park Hotel, show that operating profits increased almost ten fold.
The company enjoyed the increase in operating profits after its gross profit increased by 13.5pc, from €4m to €4.573m in the 12 months to the end of September last. The directors' report stated that they are satisfied with the year's outcome and that the strategy to invest has delivered the profitability.