Parknasilla Resort in Kerry to build profits following revamp

Operating profits at one of the country’s best known four-star hotels, Parknasilla in Co Kerry, quadrupled to €452,543 in 2014.

Newly-filed accounts for Silork Ltd also show that the firm’s gross profit rose by 19% from €3.56m to €4.25m.

However, large foreign exchange losses of €1.32m, along with interest payments of €705,182, resulted in the business recording a pre-tax loss of €1.57m.

Managing director of Parknasilla, Tony Daly, said that the hotel’s 2015 accounts “will record a very small modest profit as we have re-invested all significant funds into refurbishment, repair, and upgrading the resort”.

“Additionally, due to the funding being in US dollars, it has resulted in higher interest repayments impacting on the bottom line,” he said.

At the end of 2014, Silork owed €14m to creditors.

Mr Daly said that the revenues at the hotel last year were over €6m after being above €5m in 2014.

On the 2014 performance, Mr Daly said the year “saw excellent growth on 2013 with growth in domestic market and UK markets particularly strong”.

Commenting on last year, Mr Daly said: “2015 was an exceptionally good year that started strong and continued right through to the end of the season.

“Overall revenue grew by close to 20% driven by increased occupancy and improved rates.

"Repeat business has been very good and new business appears to be growing all the time.”

He said that the business employs an average of 78 staff which peaks in July and August at over 110 people.

“Early indications on advance booking trends are that 2016 will be another very good year.

“We anticipate growth of 6% to 8% provided there are no unforeseen events that could impact on business.”

The firm invested €400,000 in the resort in 2013 and this was followed by €450,000 in 2014.

Mr Daly said: “In addition to expenditure on the physical resort we have also invested in the management and marketing of the resort which will position us well into the future.”

Parknasilla Resort and Spa in Sneem was bought in December 2012 for €11m by a consortium of investors led by Kenmare businessman, Mr Daly and Swiss financier Jacqui Safra, who has owned neighbouring Garinish Island since the 1990s.