Monday 19 August 2019

Revealed: Shelbourne hotel makes €149k revenue per room

The Shelbourne Hotel’s operator recorded pre-tax profits of €3.9m
The Shelbourne Hotel’s operator recorded pre-tax profits of €3.9m

Gordon Deegan

the Shelbourne, one of the country's best-known five-star hotels, last year returned to profit after revenues surged.

New figures show that the company which operates the hotel on Dublin's St Stephen's Green, Kennedy Wilson-owned KW Shelbourne Ops Ltd, recorded pre-tax profits of €3.9m last year.

This followed the firm recording pre-tax losses of €453,697 in 2015.

The hotel firm returned to profit after revenues increased by 12pc, from €35.32m to €39.7m, in the 12 months to the end of December last.

The revenues show that the hotel generated revenues of €149,861 for each of its 265 rooms during the year. The hotel has 19 suites and 246 rooms. The hotel continues to be a favourite of Hollywood A-listers - Mel Gibson stayed at the €5,000-a-night Princess Grace suite last year. In 2014, US real estate specialists, Kennedy Wilson assumed control of the hotel when it paid €110m for the debts attached to the property.

The directors said they are pleased "to report strong hotel revenue and performance" for 2016. They said the profit for the year primarily reflects increased revenues of €39.7m.

They added that "2016 saw an increased demand for the hotel's five-star product, driving an increase in room prices as the economic recovery continued".

The directors remain confident that the strong trading position of the hotel will continue over the medium to long term as the benefits arriving from the increased revenue-generating position of the hotel and its facilities continue to be realised.

They said occupancy levels will drop in the short term as the hotel starts a major room and common area refurbishment this year.

The hotel has recently completed its refurbishment and is now planning to embark on projects to upgrade other internal spaces, including the Lord Mayor's lounge, the ballroom and a number of meeting rooms.

Accumulated profits total €4m. The company's cash pile reduced from €3.3m to €3.28m.

A separate firm, Torriam Hotel Operating Company Ltd, has a contract to operate the hotel.

Last year the numbers it employed at the hotel rose from 526 to 540.

The company recorded an operating profit of €4m and interest costs of €98,395 reduced the company's profits to €3.9m.

Irish Independent

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