Hotel sees profits more than double

Pre-tax profits at one of the midwest’s best known hotels, the four-star Dunraven Arms Hotel in Adare, Co Limerick, more than doubled last year, to €348,461.

Accounts filed to the Companies Office show that Dunraven Arms Hotel Ltd’s gross profit dropped by 5%, from €4.1m to €3.9m, in the 12 months to the end of October last year.

The hotel — which employs 72 people — includes a conference centre and a leisure centre.

The abridged accounts show that the company’s pre-tax profits increased from €127,537 to €348,461.

This resulted in accumulated profits of €5.2m at the end of last October.

According to their report attached to the accounts, the directors “are responding to the current challenges in the market place and do not anticipate any significant changes in the nature of business in the foreseeable future”.

The directors state that there has been increased competition in the hotel industry. “The ongoing challenge for the company is maintaining sales and gross margin and controlling overheads and required capital expenditure. The directors have initiated appropriate actions in respect of same.”

The figures show that the company’s operating profit increased three-fold, rising from €102,989 to €316,788.

The administrative expenses for the Dunraven Arms decreased last year, from €3m to €2.6m, with ‘other operating expenses’ remaining static at €1m.

The profits take account of non-cash depreciation cost of €231,466.

A dividend of €65,304 was paid out last year compared to a payout of €80,155 in 2011.

The company had a total of €5.9m in shareholder funds, which included €5.2m in accumulated profits.

Staff costs for the Dunraven Arms declined to €2.36m, with employee numbers falling by one.

Staff costs take in remuneration to directors totalling €580,960 that includes pension contributions of €168,544.