By Gordon Deegan
The two hotels owned by the Lee Hotel Group — the Mespil Hotel in Dublin and the Sligo Park Hotel — both recorded healthy rises in profits and revenue last year.
Newly-filed accounts for the group show that the four-star Mespil’s profits surged 50% to almost €3.75m, while revenues increased 20% to €10.7m.
The group attributed the Mespil’s revenue growth to the significant refurbishment work carried out at the hotel as well as the overall continued recovery in the Dublin hotel market.
The group reduced its debt levels significantly last year and is cautiously optimistic about its prospects.
“The current outlook is positive. However, the hotel sector is cyclical and unforeseen factors may affect the profitability of the company in the foreseeable future,” management said.
Revenues at the Sligo Park jumped by over 3% to €5.77m, while its operating profits jumped 23% to €538,022.
The Sligo Park enjoyed a pre-tax profit of €5.536m but this was largely due to a €5m dividend from the Mespil Hotel. The hotel employed 88 staff, as of the end of last year, with staff costs amounting to €2.29m.
Management said it is satisfied with the financial position of the company and will continue to seek to ensure that financial stresses are avoidedthrough careful management of the company’s obligations.
It said the dividend payment “is both reflective of seeking to reduce intergroup balances and to assist that hotel in relation to a substantial ongoing upgrade”.