By Gordon Deegan
A four-star Radisson hotel on the outskirts of Limerick returned to the black in 2016 and posted a pre-tax profit of €131,775.
However, a large part of the profit was accounted for in a payment in interest.
That is according to new accounts filed for the hotel which show that the hotel’s gross profit increased by 28.5% to €4.1m.
The 154-bed hotel is one of a number of hotels in the iNua hotel group and the hotel’s directors cite the main risk to the company as being the fall out from Brexit and the local economy.
The iNua group also includes the Radisson Blu hotels in Cork and Athlone, Co Westmeath, with the Muckross Park hotel in Killarney, Co Kerry.
The directors said they plan to continue the hotel’s present activities and substantially increase its current trading levels.
The directors of the Limerick hotel said that the hotel’s Earnings before interest, tax, depreciation, amortisation, and rent increased almost 47% in 2016.
They said that the profit of €131,775 was “a significant improvement” on the €344,605 loss for 2015.
The directors said they were confident of increasing earnings before interest, tax, depreciation, amortisation “on the back of a continuing favourable macroeconomic environment.”
However, they were alert to the risks posed by Brexit and any slowdown in the global economy. Staff numbers at the company rose from 122 to 139 and staff costs rose from €1.95m to €2.22m. The iNua Hospitality firm snapped up the hotel for €3.5m in 2014. The profit takes account of non-cash depreciation costs of €330,590.
At the end of 2016, the company was sitting on a shareholders’ deficit of €341,397.
However, the company’s cashpile increased from €370,340 to €427,641.
The company in 2016 recorded an operating profit of €6,775. About €125,000 in interest received significantly boosted the profit, to €131,775.