Hotel’s operating profits drop 22%

OPERATING profits at one of the Midwest’s best-known hotels, the Falls Hotel last year dropped by 22% to €219,446.

According to accounts just returned to the Companies’ Office for the year to the end of June last, they show that Falls Hotel Ltd’s gross profit decreased by 7% from €3.63m to €3.35m.

The Ennistymon, Co Clare-based hotel’s operating profits dropped from €282,073 to €219,446.

Interest charges totalling €216,398 stemming from a major expansion plan at the hotel in recent years reduced the hotel’s pre-tax profits to €3,053. The hotel’s pre-tax profit for 2008 was €14,003.

The hotel was purchased in 1986 by Dan and Eileen McCarthy and at the time, the property was a small 20-bedroom hotel.

According to the directors’ report, “the current economic climate is having an effect on the turnover of the company and the directors are aware of this and are enforcing strict cost controls”.

The accounts show that the company’s cost base decreased by 6% from €3.3m to €3.1m.

The pre-tax profit recorded last year resulted in the company having accumulated profits of €963,649 at the end of June last.

The filings show that the directors are listed as Daniel McCarthy and Eileen McCarthy and their emoluments and remuneration last year increased from €154,500 to €163,903.

More recently, the Falls Hotel secured planning permission for a hydro scheme in a bid to reduce energy costs at the hotel.